Please round to the fourth decimal Problem 3.4 Good as Gold Under the gold stand

Question

Please round to the fourth decimal

Problem 3.4 Good as Gold Under the gold standard, the price of an ounce of gold in U.S. dollars was $20.67, while the price of that same ounce in British pounds was f4.2474. What would the exchange rate between the dollar and the pound be if the U.S. dollar price had been $38.00 per ounce? Assumptions Price of an ounce of gold in US dollars (S/oz) Price of an ounce of gold in British pounds (Eoz) Gold Standard Values $20.67 £4.2474 What If $38.00 £4.2474 What is the implied S/f exchange rate?

Explanation / Answer

3.4 38/4.2474= 8.9466

3.7 =26.45/20.99= 1.26012

3.10 1,650,000/197= 8375.6345 Pounds

1,650,000/190= 8684.2105 Pounds

% Change=[(8375.6345- 8684.2105)8375.6345]* 100= 3.6842%

1,650,000/190= 8684.2105 Pounds

% Change=[(8375.6345- 8684.2105)8375.6345]* 100= 3.6842%

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