When the Nominal Exchange Changes from 110 Yen Per Dollar

question 130

Multiple Choice

When the nominal exchange changes from 110 yen per dollar to 120 yen per dollar, the dollar has:

• A)appreciated.
• B)depreciated.
• C)become overvalued.
• D)become undervalued.

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Definitions:

Faulting

The geological process by which rocks on opposite sides of a fracture or fault move relative to each other, often leading to earthquakes.

Springs

Natural outflows of groundwater from the surface of the Earth, often the result of an aquifer being filled to the point that the water overflows onto the land surface.

Long-term Capital

Financial resources that are available for use over an extended period, typically for purposes like investment in assets or to fund significant projects.

Subsequent Capital Needs

The requirement for additional funding or capital that a business may have after the initial investment period to support growth or expansion.