Lesson 2: Foreign Exchange Markets & Exchange Rates

Duration of Days: 2

Lesson Objective

Students will analyze how supply and demand determine exchange rates and explain currency appreciation and depreciation.

What determines the value of a currency?

How do exchange rates affect trade and capital flows?

C3: D2.Eco.17.9-12

CCSS: RH.11-12.7

DOK 3 – Strategic Thinking
Students apply supply-and-demand models to foreign exchange markets and evaluate the impact of exchange rate changes.

Labeled graph supports

Scenario-based practice

Extension global case examples

Exchange-rate analysis task