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Prior to the 1870s, both gold and silver were used as international means of payment and the exchange rates among currencies were determined by either
Prior to the 1870s, both gold and silver were used as international means of payment and the exchange rates among currencies were determined by either their gold or silver contents. Suppose that the dollar was pegged to gold at $28 per ounce, the French franc was pegged to gold at 75 francs per ounce and to silver at 36 francs per ounce, and the German mark was pegged to silver at 19 mark per ounce. Determine the exchange rate between US dollar and German mark, expressed in the price of US dollar in terms of German mark (i.e., European Term or Indirect quotation)
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