Lesson Plan

• Define floating exchange rate, appreciation and depreciation.
• Explain how supply and demand determine movements in a floating exchange rate.
• Analyse the impact of appreciation and depreciation on imports, exports and the trade balance.
• Apply the terminology to answer an exam‑style question on currency movements.

• Projector and screen
• Whiteboard and markers
• Printed handouts with definitions and supply‑demand diagram
• Sample examination question worksheet
• Calculators (optional)

Begin with a brief news clip showing recent fluctuations in the pound and the euro to hook interest. Ask students what they already know about how exchange rates are set. Explain that by the end of the lesson they will be able to identify and describe floating rates, appreciation and depreciation, and explain their economic effects.

1. Do‑now (5 min): Students list three recent currency changes they have heard about and predict why they occurred.
2. Mini‑lecture (10 min): Define floating exchange rate, appreciation and depreciation; display the supply‑and‑demand diagram.
3. Guided practice (12 min): In pairs, students shift the demand and supply curves on a printed graph and label the resulting appreciation or depreciation.
4. Class discussion (8 min): Discuss how appreciation makes imports cheaper and exports more expensive, and the opposite for depreciation.
5. Exam‑question practice (10 min): Students answer the provided sample question, then peer‑check using a marking rubric.
6. Recap quiz (5 min): Quick Kahoot/exit‑ticket asking for one key definition and one impact of currency movement.

Summarise the three core definitions and their effects on trade. Collect the exit‑ticket responses to gauge understanding, and assign homework: write a short paragraph explaining how a depreciation could improve the country’s trade balance, using the terminology learned today.