Question

Before World War​ I, $20.75 was needed to buy one ounce of gold.​ If, at the same​ time, one ounce of gold could be purchased in France for ​, what was the exchange rate between French francs and U.S.​ dollars?

The implied French​ franc/US dollar exchange rate is FF________$
The implied US​ dollar/French franc exchange rate is ​$ ________. ​(Round to four decimal​ places.)

Answer 1

The implied French​ franc/US dollar exchange rate is 19.7590 FF/US dollar

The implied US​ dollar/French franc exchange rate = 0.5061 US dollar/ FF

Step-by-step explanation:

The question is incomplete.

In the given question Purchase price in France is not given

So, Let us assume,

one ounce of gold could be purchased in France for FF 410.00

Now,

a)

$20.75 = FF 410.00

⇒$1 = FF
`(410.00)/(20.75)` = 19.7590 FF/US dollar

∴ we get

The implied French​ franc/US dollar exchange rate is 19.7590 FF/US dollar

b)

The implied US​ dollar/French franc exchange rate =
`(1)/(19.7590)` = 0.5061 US dollar/ FF