| Lesson Plan |
| Grade: |
Date: 25/02/2026 |
| Subject: Economics |
| Lesson Topic: Reasons for buying and selling foreign currencies: payment of profit, interest and dividends between countries |
Learning Objective/s:
- Describe why individuals, firms and governments buy or sell foreign currency to pay profits, interest, and dividends.
- Explain how each type of transaction influences short‑run exchange‑rate movements.
- Analyse a profit‑repatriation example and calculate the required home‑currency amount.
- Evaluate the broader impact of large cash flows on currency appreciation or depreciation.
- Apply a checklist to identify the economic agent, direction of flow, and likely market effect.
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Materials Needed:
- Projector and screen
- Whiteboard and markers
- Printed worksheet with flow‑chart and calculation tasks
- Calculators or spreadsheet software
- Sample exchange‑rate data sheets
- Sticky notes for the opening poll
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Introduction:
Begin with a quick poll: who has recently sent or received money across borders? Review prior learning about exchange rates and current‑account transactions. Explain that today’s success criteria are to identify the three main reasons for foreign‑currency transactions and to predict their short‑run effect on exchange rates.
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Lesson Structure:
- Do‑now (5') – Students write on sticky notes one recent international payment they know about.
- Mini‑lecture (10') – Present key concepts (foreign‑exchange market, exchange rate, current‑account flows) and the three main reasons using slides.
- Guided example (12') – Work through the BritCo profit‑repatriation calculation together, highlighting demand for home currency.
- Group activity (15') – Teams analyse a scenario (interest or dividend payment), fill out the checklist, and predict exchange‑rate impact.
- Class discussion (8') – Groups share findings; teacher emphasises how large flows affect rates and possible central‑bank interventions.
- Formative check (5') – Exit quiz (Kahoot or paper) on identifying agents, flow direction, and expected rate movement.
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Conclusion:
Recap that profit, interest, and dividend payments create demand for specific currencies, often leading to short‑run appreciation of the home currency. Students write one real‑world example of such a transaction as an exit ticket. For homework, assign a short problem requiring calculation of the home‑currency amount needed to repatriate a given foreign profit using current exchange rates.
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