Worth Its Weight in Gold. Under the gold standard, the price of an ounce of gold in U.S. dollars was $20.67, while the price of that same ounce in British pounds was £3.7683. What would be the exchange rate between the dollar and the pound if the U.S. dollar price had been $42.00 per ounce of gold?
Worth Its Weight in Gold. Under the gold standard, the price of an ounce of gold in U.S. dollars was $20.67, while the price of that same ounce in British pounds was £3.7683. What would be the exchange rate between the dollar and the pound if the U.S. dollar price had been $42.00 per ounce of gold?
Chapter29: International Finance
Section: Chapter Questions
Problem 11P
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Worth Its Weight in Gold. Under the gold standard, the price of an ounce of gold in U.S. dollars was $20.67, while the price of that same ounce in British pounds was £3.7683. What would be the exchange rate between the dollar and the pound if the U.S. dollar price had been $42.00 per ounce of gold?
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