Consider an Exchange Rate Situation in Which 1 Indian Rupee

question 153

Multiple Choice

Consider an exchange rate situation in which 1 Indian rupee equals 0.40 Japanese yen. Given this information, which of the following statements is true?

• A) The cost of operating an Indian firm in Japan is lower.
• B) An Indian tourist in Japan can buy more goods and services in Japan.
• C) A Japanese tourist can buy more goods and services in India.
• D) The cost of operating a Japanese firm in India is lower.