Predict the Expected Spot Exchange Rate Between the Japanese Yen

question 37

Multiple Choice

Predict the expected spot exchange rate between the Japanese Yen and U.S.Dollar, given that inflation in Japan, at 8%, is 4% higher than in the U.S.and that the current spot rate is *107/$.

• A)(*102.72/$)
• B)(*103.04/$)
• C)(*111.12/$)
• D)(*111.28/$)

---

Definitions:

Theravada

The oldest branch of Buddhism, which emphasizes personal enlightenment and monastic life, primarily practiced in countries like Sri Lanka, Thailand, and Myanmar.

Southern India

A region in India that includes the states of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, and Telangana, known for its distinct languages, cultures, and histories.

Dominant Buddhism

Refers to regions or societies where Buddhism is the most prevalent or influential religion.

Mandala

Sanskrit term for the sacred diagram of the universe; Japanese, mandara.