Suppose That the Yen-Dollar Foreign Exchange Rate Changes from 130

question 252

Multiple Choice

Suppose that the yen-dollar foreign exchange rate changes from 130 yen per dollar to 140 yen per dollar. Then the yen has

• A) appreciated against the dollar, and the dollar has appreciated against the yen.
• B) appreciated against the dollar, and the dollar has depreciated against the yen.
• C) depreciated against the dollar, and the dollar has depreciated against the yen.
• D) depreciated against the dollar, and the dollar has appreciated against the yen.

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Definitions:

Mean

The average of a set of numbers, calculated by dividing the sum of these numbers by the count of the numbers in the set.

Risk-Free Asset

An investment with a guaranteed return and no risk of financial loss.

Expected Rate

The anticipated yield or return on an investment, loan, or other financial products over a specific period.

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how much the values differ from the mean.