If the Exchange Rate Between the U

question 22

Multiple Choice

If the exchange rate between the U.S.dollar and the Japanese yen went from $1 US = 100 yen to $1 US = 80 yen,then

• A)Japanese goods have become less expensive for Americans.
• B)Japanese goods have become more expensive for Americans.
• C)American goods have become more expensive for the Japanese.
• D)American exports to Japan are likely to fall.

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Definitions:

Long-Term Debt

Borrowings and financial obligations that are due for repayment in a period exceeding one year.

Return On Equity

A financial ratio that measures the profitability of a business in the relation to the equity, indicating how effectively shareholder equity is being utilized.

Price-Earnings Ratio

A financial ratio that measures a company's current share price relative to its per-share earnings.

Debt-To-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity, indicating the proportion of equity and debt used to finance a company's assets.