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:

Industrial Output

The total value of the goods and services produced by a country's industrial sector.

Insufficient Capital

Insufficient Capital refers to a situation where an individual or entity lacks the necessary financial resources or funding to support its operations, investments, or growth plans.

Economic Growth

An increase in the total output of an economy. Growth occurs when a society acquires new resources or when it learns to produce more using existing resources.

Free Trade

The unrestricted purchase and sale of goods and services between countries without the imposition of constraints such as tariffs, duties and quotas.