Suppose that gold and silver are used to settle international balance of payments accounts. If the U.S. dollar is pegged to gold at $36 per ounce and the euro is pegged to gold 54 per ounce and to silver at 4.50 per ounce of silver. If the Japanese yen is pegged to silver at 240 per ounce of silver, what is the USD/JPY exchange rate?

Multiple Choice

• $1 = 90

• None of the options.

• $1 = 110

• $1 = 100

• $1 = 80