Suppose Mexico and the United States Are on the Gold

question 155

Multiple Choice

Suppose Mexico and the United States are on the gold standard.If there is a half an ounce of gold in the dollar,and one quarter an ounce of gold in the peso,then the exchange rate is

• A)$1 = 2 pesos.
• B)$1 = 4 pesos.
• C)$1 = 1/2 peso.
• D)$1 = 1/4 peso.
• E)$0.50 = 1/2 peso.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of rules and standards used for financial reporting and accounting practice in the United States.

Income Statement

A financial report that shows a company's financial performance over a specific period, detailing revenue, expenses, and net profit or loss.

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