Suppose the Nominal Exchange Rate Between the Japanese Yen and the SA

question 37

Multiple Choice

Suppose the nominal exchange rate between the Japanese yen and the SA rand is 100 yen per rand.Further, suppose that a kilogram of rice costs R2 in SA and 250 yen in Japan.What is the real exchange rate between Japan and SA?

• A)0.5 kilograms of Japanese rice per kilogram of SA rice.
• B)0.8 kilograms of Japanese rice per kilogram of SA rice.
• C)1.25 kilograms of Japanese rice per kilogram of SA rice.
• D)2.5 kilograms of Japanese rice per kilogram of SA rice.
• E)None of these answers.

---

Definitions:

Pressure Gauge

An instrument used to measure the pressure of a liquid or gas within a system, often calibrated in units of force per unit area.

ABS Equipped Tractor

A tractor unit outfitted with an Anti-lock Braking System, enhancing safety by preventing the wheels from locking during braking.

Service Brake Application

The act of engaging the primary braking system of a vehicle to reduce speed or come to a stop.

Trailer Service Gladhand

A type of coupling used to connect the air brake line from a truck to a trailer, facilitating control over the trailer's brake system.