If Sony Keeps the Price of PlayStation 3 Constant in Terms

question 34

Multiple Choice

If Sony keeps the price of PlayStation 3 constant in terms of dollars, what is the impact on Sony of a stronger yen?

• A)a decline in exports to the United States
• B)an increase in imports from the United States
• C)lower profit
• D)higher profit

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Definitions:

Borrowing Directly

The process where individuals or entities obtain funding directly from lenders without intermediaries, typically through issuing bonds or obtaining loans.

Supplier of Funds

An entity, such as a bank or financial institution, that provides capital to individuals or businesses in the form of loans or investments.

Saver

An individual or entity that regularly saves money through traditional saving vehicles or investments, often with the goal of achieving financial security or accumulating wealth.

Financial Intermediary

Institutions that act as middlemen between savers and borrowers, including banks, investment funds, pension funds, and insurance companies.