Suppose That Initially We Have an Exchange Rate of 130

question 15

Multiple Choice

Suppose that initially we have an exchange rate of 130 yen to the dollar.Suddenly trouble develops in the Japanese stock market,making American stocks more attractive than before.We expect that the dollar will ________ against the yen,meaning that it will cost ________ than 130 yen.

• A)depreciate,more
• B)depreciate,less
• C)appreciate,more
• D)appreciate,less

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Definitions:

Life Estate

A legal arrangement whereby a person (life tenant) has the right to use, occupy, and benefit from a property during their lifetime, but cannot sell it, and upon their death, it passes to a remainderman.

Strip-Mine

Strip-mining is an extractive mining technique used for surface mineral extraction, where layers of soil and rock are removed to access buried mineral or coal deposits.

License

A legal permission granted by an authority to engage in a particular activity or to use a particular property not owned by the license holder.

Real Property

Land and anything permanently attached to it, such as buildings, in contrast to personal property.