Let’s assume Mercerland and Bucksland (two sovereign nations…
Let’s assume Mercerland and Bucksland (two sovereign nations) are still on the strict gold standard. For every 500 of Mdollars (name of Mercer’s currency) in circulation in Mercerland’s economy, it holds one ounce of gold in its treasury reserves. For every 250 Bpounds (name of Buck’s currency) in circulation, Bucks holds one ounce of gold in its treasury reserve. One Bpound would therefore be exchanged for how many Mdollar?
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