For example, if the dollar is pegged to gold at U.S. $30 =
1 ounce of gold, and the British pound is pegged to gold
at £6 = 1 ounce of gold, it must be the case that the
exchange rate is determined by the relative gold
contents:
$30 = 1 ounce of gold = £6
$30 = £6
$5 = £1