Grade 12 · CAPS

Grade 12 Foreign Exchange

Tourism practice questions and a worked example

Grade 12 Tourism foreign exchange questions give you an exchange-rate table or a graph of the rand against another currency. You convert amounts between rand and other currencies, say whether the rand is strong or weak, and match forms of payment, such as a SWIFT transfer or a multi-currency card, to their descriptions. Show your working, because the method earns marks as well as the answer.

Worked example

3.1.1 (a) Do you think the rand was strong or weak against the two major currencies above?

Answer

Weak.

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Foreign Exchange

Question 1 of 3

3.1.4 Gordon's grandmother gave him GBP3 000 to buy a new bicycle. Calculate the amount Gordon had in rand to buy a new bicycle in South Africa. NOTE: Round off your answer to TWO decimal places. Show ALL calculations.

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More practice questions

Explore additional Grade 12 Foreign Exchange questions.

  • 2
    3.1.1 (b) Give ONE reason for your answer.
  • 3
    3.1.2 Explain THREE possible reasons why Gordon's grandmother insisted that he should buy the bicycle in South Africa.
  • 4
    3.1.3 The money Gordon received from his grandmother gave him the buying power to afford a top-of-the-range bicycle. Explain the term buying power.
  • 5
    3.2.3 Give TWO reasons why the South African rand fell to a new low against the US dollar from mid-February to mid-March 2023.

Common mistakes

  • The most common error is dividing instead of multiplying by the exchange rate (or the reverse) when converting between rand and a foreign currency -- the real papers mark full working, so a wrong operation loses the mark even if a learner recovers a plausible-looking number. Learners also often confuse the bank BUYING rate with the bank SELLING rate when judging whether the rand is "strong" or "weak" against a currency.

More Grade 12 Tourism topics

Aligned to CAPS Grade 12 Tourism — Foreign Exchange. Curriculum source: CAPS for the FET Phase, Department of Basic Education.

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