exchange rate

Changing one measure for another is known as exchange – one measure replaces another measure.

We can think about this in the context of going on holiday to a foreign country.

Steffan is going on holiday to Spain. The country’s currency is the euro (€). The exchange rate is £1 = €1.14. This means for every pound Steffan exchanges, he will get €1.14.

Steffan wants to exchange £400.

Therefore, 400 × 1.14 = €456

This means that Steffan has €456 to spend on his holiday.