Education > Complete treatise on practical arithmetic and book-keeping

ARBITRATION OF EXCHANGES.
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Examples.
1. To how many milreas will 715/ amount, exchange
5s 8d per milrea ? - Ans. 2523 mil. 529Tt rea.s.
2. To how many /, &c. will a draught of 2523 mil. 528
as amount, exchange at 5s 8c? per milrea ?
Ans. 714? 19s lid 344x7*
3. How many milreas must be given for 213? 7s lOd,
change at 5s 9|c? per milrea ?
Ans. 736 milr. 8924jV teas.
4. To how much sterling will 736 milreas amount, ex-
ange at 5s 9|rf per milrea ? - Ans. 213? 2s. 8«?.
ARBITRATION OF EXCHANGES.
S the coufse or rate of exchange between one nation and
Dther, is almpst continually varying, either by rising or
.ling, from the variations in the circumstances and ba¬
te of trade ; so the design of arbitration is to remit or
iw upon foreign places in such a manner, as shall turn out
most profitable.
'.rbitratton is generally divided into two parts, Simple
Compound.
I. SIMPLE ARBITRATION.
In Simple Arbitration, the exchanges among three places
y are concerned. The par of arbitration, or arbitrated
ce, is such a rate of exchange between two places, as shall
in proportion with the rates assigned between each ofthem
1 a third place. After this par of arbitration is comput-
by comparing it with the present course of exchange,
erson can judge which way to remit or draw to the most
vantage, and determine what the advantage shall be.
Examples.
. If the exchange between London and Amsterdam be
Qd per ? sterling, and the exchange between London and
is be 32d per crown; required the par of arbitration be
:en Amsterdam and Paris. Ans. 54<? flem. per crown.
If the exchange between Amsterdam and Paris be 54<?
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