Who Would Benefit If the Exchange Rate with Yen (In

question 237

Multiple Choice

Who would benefit if the exchange rate with yen (in U.S. dollars) increased?

• A) c and e.
• B) Japanese tourists.
• C) U.S. consumers.
• D) U.S. exporters.
• E) Japanese exporters.

---

Definitions:

Fixed Exchange Rates

A currency system where the value of a country's currency is pegged at a fixed rate to another currency or a basket of currencies, making it stable against those currencies.

Foreign Exchange Reserves

Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies, used to back liabilities and influence monetary policy.

Domestic Money Supply

Refers to the total amount of money available within a country's economy at a specific time, including cash, coins, and balances held in bank accounts.

Appreciate

To increase in value or price over time, often used in the context of currencies, assets, or investments.