Consider the Exchange Rate Between the U

question 175

Multiple Choice

Consider the exchange rate between the U.S.dollar and the Japanese yen.If the yen appreciates,then:

• A) the dollar must appreciate also.
• B) the dollar must depreciate.
• C) the value of the dollar will remain constant.
• D) the value of the dollar can increase,decrease,or remain unchanged.

---

Definitions:

Deficit

A situation where expenditures exceed revenue, leading to a shortfall that must be financed through borrowing or using savings.

Earnings Per Share

A financial ratio that measures the portion of a company's profit allocated to each outstanding share of common stock, indicating the company’s profitability.

Cash Dividends

Cash distributions to shareholders from a company's earnings.

Preferred Stock

A class of ownership in a corporation with a priority claim on assets and earnings before common stock; typically does not have voting rights but has a fixed dividend.