In 1985, the Exchange Rate Between the U

question 47

Multiple Choice

In 1985, the exchange rate between the U.S. dollar and the Japanese yen was $1 = 262 yen; in 2003, the rate was $1 = 110 yen. Between 1985 and 2003, the

• A) dollar appreciated in value relative to the yen.
• B) yen appreciated in value relative to the dollar.
• C) dollar price of yen fell.
• D) yen price of dollars rose.

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Definitions:

Consistent Dividends

Regular and predictable payments made by a company to its shareholders out of its profits.

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a period, to identify trends and changes.

Base Year Amount

A reference figure used in economic and financial analysis, representing a specific year's data against which other years' data are compared.