Using a foreign currency jackpot to teach exchange rates
Lesson Summary
Show students how to convert money from one currency into another and what happens when a currency appreciates or depreciates in value.
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Clip Summary
Squid Game starts with 456 players. Every time a player dies in, or outside an official game, SK â‚©100 million is added to the prize fund. At the end of the first game, 255 players have been eliminated, so the jackpot currently stands at SK â‚©25.5 billion.
Assessment Questions
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If USD $1 is equal to SK â‚©1192.57, what is SK â‚©25.5 billion equal to in USD?
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If the USD appreciates against the SK â‚©, the SK â‚©25.5 billion jackpot is worth ____ in USD.
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​More
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Less
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Stays the same
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Assume USD $1 is now equal to SK â‚©2000. What is the SK â‚©25.5 billion jackpot now worth in USD? What is the change from Q1?
Hover over box to see suggested answers
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As of March 2022, â‚©25.5 billion /1192.57 = USD $21.382 million.
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Less: If the USD appreciates against the SK â‚©, then the SK â‚© buys fewer USD, or expressed differently, the jackpot is worth less when converted into USD.
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â‚©25.5 billion /2000 = USD $12.75 million, a decrease of $8.632 million.