ZuoTi.Pro
Question

Suppose that gold and silver are used to settle international balance of payments accounts. If the...

Suppose that gold and silver are used to settle international balance of payments accounts. If the U.S. dollar is pegged to gold at $36 per ounce and the euro is pegged to gold €54 per ounce and to silver at €4.50 per ounce of silver. If the Japanese yen is pegged to silver at ¥240 per ounce of silver, what is the USD/JPY exchange rate?

Multiple Choice

  • $1 = ¥90

  • None of the options.

  • $1 = ¥110

  • $1 = ¥100

  • $1 = ¥80

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Yen/Euro = 240/4.50

i.e. 53.333 Yen/Euro

Also, Euro/Gold = 54/36

i.e. 1.5 Euro/Dollar

Hence, Yen/Dollar = (Yen/Euro)*(Euro/Dollar)

= 53.333*1.5

= 80

Hence, the answer is 1$ = Yen 80

  • $1 = ¥80

0 0
Add a comment
Know the answer?
Add Answer to:
Suppose that gold and silver are used to settle international balance of payments accounts. If the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 9. What is the most commonly used method to s e most commonly used method to...

    9. What is the most commonly used method to s e most commonly used method to settle a futures contract? A) The futures contract buyer delivery of the underlying asset. B) The futures contract seller usu contract buyer usually holds the contract to the maturity date and takes the es contract seller usually holds the contract to the maturity date and makes me delivery of the underlying asset to the counterpart. utures contract traders usually offset their initial futures positions...

  • 19 Suppose that the GBP is pegged to gold at £20 per ounce. The USD is...

    19 Suppose that the GBP is pegged to gold at £20 per ounce. The USD is pegged to gold at $35 per ounce. This implies an exchange rate of $175/18. How might an Investor take advantage of situation if the current market exchange rate is $1.60/1£? Multiple Choice points 02-50-30 0 Buy gold at $35 per ounce. Convert the gold to $200 at $20 per ounce. Exchange the €200 for dollars at the current rate of $160 per pound 0...

  • no need to answar this Part 1 One-choice questions (4' for each ques 1. Please choose...

    no need to answar this Part 1 One-choice questions (4' for each ques 1. Please choose the quotation which is direct ou A in Germany USD1 = FUR1.4567 C in US USD 1 AUD 1.1625 hich is direct quotation Bin UK GBPUSDI 6752 D in France EUR USD 1.1752 expect to receive 50 pounds sterling at the end of 60 days. You can remove 2. Assume you are an American exporter and exp the risk of loss due to a...

  • Part 1 One-choice questions (4' for each 1. Please choose the quotation which is direct A...

    Part 1 One-choice questions (4' for each 1. Please choose the quotation which is direct A in Germany USD = EUR1.4567 In US USD 1 - AUD1.1625 $14' for each question) on which is direct quotation Bin UK GBPUSD1.6752 Din France EURI USD 1.1752 expect to receive 50 pounds sterling at the end of 60 days. You can remove 2. Assume you are an American exporter and en e risk of loss due to a devaluation of the pound stering...

  • 15 Suppose that the current exchange rate is €1.00 - $1.60. The indirect quote from the...

    15 Suppose that the current exchange rate is €1.00 - $1.60. The indirect quote from the US. perspective is A) €0.6250 - $1.00 3) €1.50 - $1.00 €1.00 - $1.60 Dy none of the options 19) The bid price A) is the price that a dealer stands ready to pay B) is the price that a dealer stands ready to sell at. is the price that the dealer has just paid for something, his historical cost of the most recent...

  • studie se) IL 3 Quiz 1 Name (in Chinese) estions (4' for each question) Part 1...

    studie se) IL 3 Quiz 1 Name (in Chinese) estions (4' for each question) Part 1 One-choice questions (4' for each que * Please choose the quotation which is direct quota A in Germany USDI - FUR1.4567 USD 1 - AUD 1. 1625 BUK GBPUSD16752 In France EURI-USD 1.1752 ounds sterline at the end of 60 days. You can remove and expect to rece S 2. Assume you are an American exporterar the risk of loss due to a devaluation...

  • 1. Why do you think that the Chinese historically pegged the value of the yuan to...

    1. Why do you think that the Chinese historically pegged the value of the yuan to the U.S. dollar? 2. Why did the Chinese move to a managed-float system in 2005? 3. What are the benefits that China might gain by allowing the yuan to float freely against other major currencies such as the U.S. dollar and the euro? What are the risks? What do you think they should do? 4. Is there any evidence that the Chinese kept the...

  • 1. John sold a call option on Euro for $.04 per unit. The strike price was...

    1. John sold a call option on Euro for $.04 per unit. The strike price was $1.30, and the spot rate at the time the option was exercised was $1.32. Assume John bought the Euro from the market if the option was exercised. Also assume that there are 100,000 units in a Euro option. What was John’s net profit on the call option? Baylor Bank believes the New Zealand dollar will appreciate over the next 20 days from $.50 to...

  • 6. The balance of payments is ..-(A) negative when the nation runs a trade deficit. (B)...

    6. The balance of payments is ..-(A) negative when the nation runs a trade deficit. (B) positive when the nation runs a trade surplus. (C) negative when the country is a borrower in the international apital market. (D) positive when the country is a lender in the international capital market. (E) always equal to zero. 7. If the U.S. dollar increases in value relative to the British pound, (A) U.S. wheat will become cheaper in England. (3) British bicycles will...

  • Suppose you sell six August 2017 gold futures contracts on this day, at the last price...

    Suppose you sell six August 2017 gold futures contracts on this day, at the last price of the day. Use Table 23.1 a. What will your profit or loss be if gold prices turn out to be $1,249.70 per ounce at expiration? (Do not round intermediate calculations. Enter your answer as a positive value rounded to the nearest whole number, e.g., 32.) b. What will your profit or loss be if gold prices are $1,235.90 per ounce at expiration? (Do...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT