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Sphinxa [80]
2 years ago
4

Suppose that Britain pegs the pound to gold at six pounds per ounce, whereas the exchange rate between pounds and U.S. dollars i

s $5 = £1. What would an ounce of gold be worth in U.S. dollars?
Mathematics
1 answer:
Veseljchak [2.6K]2 years ago
5 0

Answer:

$30

Step-by-step explanation:

The question says that one ounce costs £6. Now we need to find out what £6 is in dollars. To do this we use the ratio based on the exchange rate:

£1 : $5

£6 : x

then we cross multiply

x = $30

So one ounce of gold costs £6 or $30

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Answer:

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