If There Is Bilateral Currency Trade Between Japan and the U.S

question 170

Multiple Choice

If there is bilateral currency trade between Japan and the U.S., then as the supply of U.S. dollars on the world foreign exchange market ________, the price of a dollar in terms of Japanese yen will ________.

• A) increases, fall
• B) decreases, fall
• C) increases, increases
• D) decreases, stays the same

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Definitions:

Growth Rate

The rate at which a company's earnings, revenue, or another financial metric increases over a specific period.

Cost of Preferred Stock

The required rate of return by investors for owning preferred stock in a company.

Market Rate of Return

The average or expected rate of return on an investment in the market.

Tax Rate

The rate determining the tax payment required from a person or a corporation’s earnings.