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In the united states bimetallism was adopted by the

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51.In the United States, bimetallism was adopted by the Coinage Act of 1792 and remained a legal standard until 1873,A. when Congress dropped the silver dollar from the list of coins to be minted.B. when Congress dropped the twenty-dollar gold piece from the list of coins to be minted.C. when gold from the California gold rush drove silver out of circulation.D. when gold from the California gold rush drove gold out of circulation.
52.Gresham's Law states that
53.Suppose that the pound is pegged to gold at £20 per ounce and the dollar is pegged to gold at $35 per ounce. Thisimplies an exchange rate of $1.75 per pound. If the current market exchange rate is $1.60 per pound, how would youtake advantage of this situation?Hint: assume that you have $350 available for investment.
54.Suppose that both gold and silver are used as international means of payment and the exchange rates amongcurrencies are determined by either their gold or silver contents. Suppose that the dollar was pegged to gold at $20 perounce, the Japanese yen is pegged to gold at 120,000 yen per ounce and to silver at 8,000 yen per ounce of silver, andthe Australian dollar is pegged to silver at $5 per ounce of silver. What would the exchange rate between the U.S. dollarand Australian dollar be under this system?

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Term
Fall
Professor
Wellman
Tags
Foreign exchange market

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