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This video discusses how to convert currency using the currency exchange rate. In the example, John wants to convert $15,000 US dollars to Euros using the exchange rate of 1 US dollar to 0.9 Euros. To convert, multiply the given amount by the exchange rate in a fraction, ensuring that the units cancel out to leave only Euros. Place US dollars on the top of one fraction and on the bottom of the other fraction to cancel out the units.