1. Let's start by defining the concept: Currency conversion is the process of exchanging one country's currency for another's. 2. It involves using an exchange rate, which is the value of one currency expressed in terms of another currency. 3. For example, if the exchange rate is $1 ext{ USD} = 0.85 ext{ EUR}$, it means 1 US dollar is equivalent to 0.85 euros. 4. To convert a specific amount, multiply the amount by the exchange rate. For example, converting 100 USD to EUR: $$100 \times 0.85 = 85$$ euros. 5. This understanding allows you to solve multiple choice questions related to currency conversion by applying the exchange rate and performing the multiplication or division as needed.