Converting foreign currency from a financial literacy and proportional reasoning perspective

Can undergraduates convert $100 of foreign currency? Can they convert 100 NZD into foreign currency? We examine foreign currency conversion from a financial literacy lens and compare it to a proportional reasoning perspective. A qualitative and quantitative analysis of 108 undergraduate students revealed that consistent proportional reasoning contributed a greater impact on accuracy compared to financial literacy. We also find no evidence of a difference in preferred currency exchange representations and accuracy, bizarrely, more experienced currency exchangers performed below average. Furthermore we take a deeper dive into the different approaches and methodology students undertook to solve each particular problem and uncover common misconceptions.

Supervised by Dr. Igor' Kontorvich.