Scenario: Sally Goes to Japan

question 49

Multiple Choice

Scenario: Sally Goes to Japan
Sally Johnson has identified a market for her company's products in Japan. She is excited about expanding her company, but knows that she needs to learn how the foreign exchange market works before she can successfully sell her products abroad.
-If Sally sees a quote of ¥117.87/$,she should know that ________.

• A) the yen is the base currency here
• B) this is a direct quote on the dollar
• C) this is a direct quote on the yen
• D) the quote is in U.S. dollars

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Definitions:

Personal Tax Rate

A rate at which an individual is taxed on their personal income by the government.

Break-Even Point

The production level at which total revenues equal total expenses, and the company or project is not making a profit or a loss.

Fixed Operating Costs

The expense that does not change with the level of production or sales over a short period.

Variable Costs

Costs that vary directly with the level of production or output, such as raw materials and labor expenses.