Under the gold standard system, if 1 ounce of gold was worth $23 in the United States and worth 15.5 pounds in Great Britain, then:
A) $1 = 1.48 pounds.
B) 1 pound = $1.48.
C) $1 = 365 pounds.
D) 1 pound = $0.67.

Question

Quizplus · Accepted Answer

Since 1 ounce of gold is equivalent to $23 in the US and 15.5 pounds in Great Britain, we can set up a proportion:

1 ounce / $23 = 15.5 pounds / x

Solving for x, which represents the value of 15.5 pounds in US dollars, we get:

x = $23 * (15.5 / 1) = $356.5

Therefore, 1 pound is worth:

$356.5 / 15.5 = $22.99

Rounding to the nearest cent, we get $23. Hence, 1 pound is equivalent to $23. Dividing both sides by 1 pound, we get:

$1 / 1 pound = $23 / 1 pound

Therefore, 1 pound is worth $1 / $23 = $0.0435 (rounded to the nearest cent). Using the inverse, we find that $1 is worth:

1 / ($0.0435 / 1 pound) = 22.99 pounds ≈ 23 pounds

Therefore, 1 pound is worth $1.48 (rounded to the nearest cent).

Under the Gold Standard System, If 1 Ounce of Gold