If a dollar's value were set at 1/30 of an ounce of gold, and if a Danish kroner's value were set at 1/45 of an ounce of gold:
A) a good priced at $60 would cost 40 kroner.
B) the dollar and the kroner would be on a fixed exchange rate system.
C) an ounce of gold costs $75 on the world market.
D) all of the above.
Correct Answer:
Verified
Q15: Which of the following statements is FALSE?
A)
Q16: Fixed exchange rates are exchange rates between
Q17: Exchange rates that change when a nation
Q18: Reducing the amount of gold backing a
Q19: Devaluation in a fixed exchange rate system
Q21: If a dollar's value were set at
Q22: Suppose all nations' monies were backed by
Q23: If Country B were to devalue its
Q24: There is a devaluation of Country A's
Q25: Exchange rates that are set through the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents