Lesson Plan

• Describe what a foreign exchange rate is and how it is expressed.
• Explain the difference between direct and indirect quotations.
• Calculate currency conversions using given exchange rates.
• Analyse how exchange‑rate movements affect imports, exports and inflation.
• Interpret a simple supply‑and‑demand diagram for a foreign currency.

• Projector and screen
• Whiteboard and markers
• Printed handout with exchange‑rate examples
• Calculator (or smartphone calculator)
• Worksheet for guided practice
• Graph paper for supply‑demand diagram

Begin with a quick poll: “If you were buying a video game from the US, how would you know how much it costs in pounds?” Connect this to students’ prior experience with online shopping abroad. State that by the end of the lesson they will be able to define exchange rates, explain quoting conventions, and perform basic conversions.

1. Do‑now (5'): Students solve a one‑line conversion problem on the board (e.g., “How many USD for £50 at £0.85/USD?”).
2. Mini‑lecture (10'): Define foreign exchange rate, introduce direct vs. indirect quotations, show the formula and simple example.
3. Guided practice (10'): Work through two conversion problems together using the handout and calculators.
4. Think‑Pair‑Share (5'): Discuss how a change in the rate would impact the cost of imports and export revenue.
5. Diagram activity (10'): In pairs, draw a supply‑and‑demand curve for a foreign currency and label the equilibrium exchange rate.
6. Concept check (5'): Quick quiz (exit ticket) – one sentence: “Why does a weaker domestic currency make exports more competitive?”

Summarise the key points: definition, quoting methods, conversion calculation, and economic impact. Collect exit tickets to gauge understanding. For homework, ask students to look up today’s GBP‑USD rate and write a short paragraph on how a 5% change would affect a UK‑based retailer importing goods.