Assume we are operating under the gold standard. If the fixed exchange rate between the dollar and the yen is 120, and the dollar's par value is 60, what is the yen's par value?
A. 7,200
B. 720
C. 2
D. 0.5
Answer: A. 7,200
Assume we are operating under the gold standard. If the fixed exchange rate between the dollar and the yen is 120, and the dollar's par value is 60, what is the yen's par value?
A. 7,200
B. 720
C. 2
D. 0.5
Answer: A. 7,200