Under the Gold Standard of Currency Exchange That Existed from 1879

question 44

Multiple Choice

Under the gold standard of currency exchange that existed from 1879 to 1914, an ounce of gold cost $20.67 in U.S. dollars and £4.2474 in British pounds. Therefore, the exchange rate of pounds per dollar under this fixed exchange regime was:

• A) £4.8665/$.
• B) £0.2055/$.
• C) always changing because the price of gold was always changing.
• D) unknown because there is not enough information to answer this question.

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Definitions:

Coercive Action

Using force or threats to compel someone to act in a certain way, often violating their freedom or rights.

Wholly Owned Subsidiary

A company whose entire stock is held by another company, making it completely controlled by the parent company.

Complete Ownership

Having full legal rights and control over a property or asset without any restrictions.

Licensing

The process of obtaining permission from a governmental or regulatory authority to conduct certain activities that are otherwise restricted.