Currency conversion questions in numerical tests: multiply or divide?
Currency conversion questions give you an exchange rate and ask you to convert an amount, often as one step in a longer calculation. The rule: if the rate is 1 GBP = 1.25 USD, multiply to go from pounds to dollars and divide to go from dollars to pounds. Getting the direction wrong is the classic mistake, and these questions are slow: on forge's free numerical tests, currency and unit questions take a median of 40 seconds, the longest of any skill. See our numerical reasoning guide for the wider test.
- Rate 1 A = r B: A → B multiply, B → A divide.
- Write the units next to every number; it shows you which way to go.
- Cross rates: 1 USD in EUR = (EUR per GBP) ÷ (USD per GBP).
- On forge's tests: 66% accuracy on currency and unit questions (564 answers), median 40 seconds, the slowest skill.
- Common in SHL, Aon, Cappfinity and Pulsifi numerical tests.
Free sample question
Currency conversion question
GBP, USD, EUR, SGD, INR and JPY, in both directions, plus cross rates.
One question in the real format, with the worked solution · no signup
Quick summary
- Multiply when converting from the currency on the "1" side of the rate.
- Divide when converting into that currency.
- Write units beside numbers to keep the direction straight.
- Use cross rates when two currencies are both quoted against a third.
- Sanity-check: a weaker currency should give you a bigger number.
Multiply or divide?
Going from USD to GBP, so divide: 3,750 ÷ 1.25 = 3,000 GBP.
Trap: multiplying gives 4,687.50 GBP. Sanity check: each pound buys more than one dollar, so the pound figure must be smaller than the dollar figure.
Cross rates
1 USD = 1 ÷ 1.30 GBP. Each GBP = 1.17 EUR. So 1 USD = 1.17 ÷ 1.30 = 0.90 EUR.
Conversions inside longer questions
Increase = S$54,000. In USD: 54,000 ÷ 1.35 = US$40,000.
Do the subtraction in one currency first, then convert once. Converting both figures separately doubles the work and the rounding risk.
Speed tips
- Units beside numbers: "3,750 USD ÷ 1.25 (USD/GBP) = GBP". The units cancel the right way only one way round.
- Convert once: do the arithmetic in the original currency, convert at the end.
- Estimate: 1.25 is 5/4, so dividing by it is multiplying by 0.8.
Get faster at conversions
Free numerical drills plus SHL, Aon and Cappfinity-style timed tests with worked answers.
Start numerical practiceRelated guides
- Numerical reasoning tests
- Ratio questions
- Numerical question types
- Can you use a calculator in SHL tests?
Source notes
Accuracy and timing come from answers on forge's free numerical tests, re-graded on 30 September 2026 (564 answers on currency and unit questions). Exchange rates in examples are illustrative. All questions are written or generated by forge.
Frequently asked questions
How do you do currency conversion in a numerical reasoning test?
Check which way the rate is quoted. If 1 GBP = 1.25 USD, multiply pounds by 1.25 to get dollars and divide dollars by 1.25 to get pounds. Writing the units next to each number tells you which to do.
When do I multiply and when do I divide by the exchange rate?
Multiply when converting from the currency on the '1' side of the rate (1 GBP = 1.25 USD: GBP to USD). Divide when going the other way (USD to GBP). If the answer looks too big or too small, you've probably gone the wrong way.
What is a cross rate?
A rate between two currencies worked out through a third. If 1 GBP = 1.25 USD and 1 GBP = 1.15 EUR, then 1 USD = 1.15 ÷ 1.25 = 0.92 EUR.
Why do currency questions take so long?
They usually combine a conversion with another step (a percentage or a comparison) and involve awkward decimals. On forge's free numerical tests, currency and unit questions have the slowest median time, about 40 seconds.
Are calculators allowed for currency questions?
In most graduate numerical tests (such as SHL and Aon), yes. In the CCAT, no. Check your test's rules and practise both ways.
Stop losing time on conversions
Timed numerical practice with explanations. Credits never expire.
Practise nowStop reading. Start practising.
Try a few real questions — free.
You know the format now. Reading about the test won't move your score — timed reps will. Do a free diagnostic, earn credits just for signing up, and see exactly where you stand.