If,under the Gold Standard,the price of 1oz of gold was $15 or £5,what was the $/£ exchange rate?

Name: If,under the Gold Standard,the price of 1oz of gold was $15 or £5,what was the $/£ exchange rate?
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Quizplus · Accepted Answer

The exchange rate is determined by comparing the amount of currency it takes to buy a fixed quantity of gold in each currency. Here, $15 buys 1oz of gold and £5 also buys 1oz of gold. Therefore, $15 is equivalent to £5, making the exchange rate $3/£ (since $15/£5 = $3).

If,under the Gold Standard,the Price of 1oz of Gold Was