If the US Federal Reserve Were to Purchase Yen Using Dollars, What

question 23

Multiple Choice

If the U.S. Federal Reserve were to purchase yen using dollars, what would be the result?

• A) The dollar would not change in value against the yen.
• B) The dollar would appreciate against the yen.
• C) The supply of dollars to Japan would decrease.
• D) The supply of dollars to Japan would increase.

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Definitions:

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional stock.

Dual-Class Shares

A corporate structure with two or more classes of stock, each with differing voting rights, dividends, or other attributes.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company’s profits through dividends.

Founders

Individuals who establish a company or an organization, often involved in its early development and management.