Under the Gold Standard of Currency Exchange That Existed from 1879

Question 1
Multiple Choice

Under the gold standard of currency exchange that existed from 1879 to 1914, an ounce of gold cost $20.67 in U.S. dollars and £4.2474 in British pounds. Therefore, the exchange rate of pounds per dollar under this fixed exchange regime was: A) £4.8665/$. B) £0.2055/$. C) always changing because the price of gold was always changing. D) unknown because there is not enough information to answer this question.

B