Suppose That the Exchange Rate Between the British Pound and Gold

question 109

Multiple Choice

Suppose that the exchange rate between the British pound and gold was £20 per ounce of
Gold and the exchange rate between the U.S. dollar and gold was $80 per ounce of gold. What is the U.S. dollar exchange rate with respect to the British pound?

• A) $1 exchanges for £4.
• B) $1 exchanges for £0.4.
• C) $1 exchanges for £0.25.
• D) $1 exchanges for 0.25 ounces of gold in Britain.

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Definitions:

Future Income

Anticipated earnings or revenue one expects to receive in a forthcoming period, driven by employment, investments, or other sources.

Human Capital

The set of skills, acquired knowledge, and lived experiences present in an individual or a populace, evaluated in light of their value significance or cost to a corporation or a sovereign state.

Education

The process of facilitating learning, or the acquisition of knowledge, skills, values, morals, beliefs, and habits through various methods such as teaching, training, and research.

On-the-Job Training

Training provided to employees while they perform their regular jobs, allowing them to learn and earn simultaneously.