If the nominal exchange rate between British pounds and dollars is 0.5 pound per dollar,?

how many dollars can you get for a British pound?

a. 0.5 of a dollar

b. 1.5 dollars

c. 1 dollar

d. 2 dollars

e. None of these answers are correct.

If the nominal exchange rate between British pounds and dollars is 0.5 pound per dollar,?

I am going to let you know a little secret about currency conversions that you will never forget, and it applies to ALL currencies.

the answer is to take the INVERSE of .50 or

1

__

.50 which of course is $2. So the answer is D- $2.

if you were starting with $2, then you know that the other relationship is the inverse, so 1/2= .50

GOT IT???

of course, in the real world, if you walked into a bank with a british pound and converted in to US, you would get slightly less than $2, because the bank charges a small exchange fee

However, mathematically, the method I showed you above will always work .

you can also do it the long way

.5 pound = 1 dollar

1 pound= x dollars

.5x=1

x=1/.5

x=2

If the nominal exchange rate between British pounds and dollars is 0.5 pound per dollar,?

D