What is the exchange rate between dollars and Swiss francs if one dollar is convertible into 1/20 ounce of gold and one Swiss franc is convertible into 1/40 ounce of gold?

necessaryh

necessaryh

Answered question

2021-01-23

What is the exchange rate between dollars and Swiss francs if one dollar is convertible into 1/20 ounce of gold and one Swiss franc is convertible into 1/40 ounce of gold?

Answer & Explanation

ottcomn

ottcomn

Skilled2021-01-24Added 97 answers

Given: 1 dollar=120 ounce of gold
1 Swiss franc=140 ounce of gold
Since 120=240=2140:
1 dollar=120 ounce of gold
=2140 ounce of gold =21 Swiss franc =2 Swiss franc
Thus the exchange rate between dollars and Swiss francs is 2 Swiss francs for every dollar.

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