Chap002 31 - Topic: Bimetallism: Before 1875 Topic:...

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15. Suppose that both gold and silver are used as international means of payment and the exchange rates among currencies are determined by either their gold or silver contents. Suppose that the dollar was pegged to gold at $20 per ounce, the Japanese yen is pegged to gold at 120,000 yen per ounce and to silver at 8,000 yen per ounce of silver, and the Australian dollar is pegged to silver at $5 per ounce of silver. What would the exchange rate between the U.S. dollar and Australian dollar be under this system? A. $1 U.S. = $1 Australian B. $1 U.S. = $2 Australian C. $1 U.S. = $3 Australian D. None of the above
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Unformatted text preview: Topic: Bimetallism: Before 1875 Topic: Evolution of the International Monetary System 16. The United States adopted the gold standard in A. 1776. B. 1879. C. 1864. D. 1973. Topic: Classical Gold Standard: 1875-1914 Topic: Evolution of the International Monetary System 17. The gold standard still has ardent supporters who believe that it provides A. an effective hedge against price inflation. B. fixed exchange rates between all currencies. C. monetary policy autonomy. D. all of the above Topic: Classical Gold Standard: 1875-1914 Topic: Evolution of the International Monetary System...
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This note was uploaded on 11/09/2011 for the course FIN IFMG201 taught by Professor Eun during the Spring '11 term at Michigan Flint.

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