Fill in the Blank QuestionFill in the blank question.Under the , each country set a number of units of its currency equal to an ounce of gold, and the ratios of these units of gold equivalence established the exchange rate between any two currencies.

Suppose that Britain pegs the pound to gold at 6 pounds per ounce, whereas the exchange rate between pounds and U.S. dollars is $4 = £1. What should an ounce of gold be worth in U.S. dollars?$0.67$24.00$1.50$0.42

A exchange rate system allows currency values to fluctuate against one another based on supply and demand.

A country that sets the value of its currency based on the value of another world currency has a(n) _____ exchange rate.A.flexibleB.inflatedC.fixedD.trade-weighted

Which of the following is a characteristic of the exchange rate agreement in the European Monetary System (EMS)?Group of answer choicesGermany suffered from hyperinflation and this cause its currency to devalue rapidly.Each country fixes the price of gold in terms of their domestic currency.USD was pegged at USD 35 per ounce of gold.Member countries’ exchange rates were allowed to fluctuate within a narrow band

In economics, an exchange rate describes:A.the amount of currency available in fixed exchanges.B.how much one currency is worth compared to another.C.the total value of a country's imports and exports.D.how quickly prices are rising in an international market.