The USReal Interest Rate Rises Relative to Japan's

question 67

Multiple Choice

The U.S.real interest rate rises relative to Japan's.As a result,

• A) the yen will depreciate and the dollar will appreciate.
• B) the yen will appreciate and the dollar will depreciate.
• C) both the dollar and the yen will depreciate.
• D) both the dollar and the yen will appreciate.

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Definitions:

Accrual-based Net Income

The measure of an organization's earning power from ongoing operations, calculated by adding non-cash expenses and revenues booked but not paid to net income under cash accounting.

Domestic Corporations

Companies that are incorporated and operate within the country where they were formed.

Excess Fair Value

The amount by which the fair market value of an asset exceeds its carrying value on the balance sheet.

Franchise Contract

A legal agreement granting a person or group the rights to operate a business under the franchisor's model and brand for a specified period.