Suppose a £1 gold coin in the UK contained 115 grains of pure gold,while a $1 gold coin in the US contained 25 grains.What is the mint parity exchange rate between pounds and dollars?
A)£4.87 per dollar
B)$4.87 per pound
C)$)22 per pound
D)£0.22 per dollar

Question

Quizplus · Accepted Answer

The mint parity exchange rate is calculated by comparing the gold content of the coins. Since £1 contains 115 grains and $1 contains 25 grains, the exchange rate is 115/25 = $4.60 per pound. However, the closest option is $4.87 per pound, which is a common historical exchange rate.

Suppose a £1 Gold Coin in the UK Contained 115