Question

A bank issues 200 pesos, against which it holds assets of $40 cash, plus bonds worth 60 pesos. On backing theory principles, how many pesos will it take to buy $1?

Answer 1

3.5

Step-by-step explanation:

Calculation for how many pesos will it take to buy $1

Using this formula

Number of Pesos=Pesos issued by bank-Bond/Asset

Let plug in the formula

Number of Pesos=200 -60 /$40

Number of Pesos=140/40

Number of Pesos=3.5

Therefore the number of pesos it will take to buy $1 will be 3.5