Question
prior to the 1870s bth gold and silver were used as international means of payment and the exchange rates amount currencies were determined by either
prior to the 1870s bth gold and silver were used as international means of payment and the exchange rates amount currencies were determined by either their gold or silver contents. suppose that the dollar was pegged to gold at $22 per ounce, the French Franc was pegged to gold at 68 francs per once and to silver at 35 francs per ounce, and the german mark was pegged to silver at 17 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 (Ie European term or indirect quotation)
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