If the Demand for Dollars Outstrips Its Supply and If

question 76

Multiple Choice

If the demand for dollars outstrips its supply and if the supply of Japanese yen is greater than the demand for it, what will happen?

• A) The dollar will appreciate against the yen.
• B) The dollar will depreciate against the yen.
• C) The exchange rates will remain the same.
• D) The yen will appreciate against the dollar.

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Definitions:

Mutually Exclusive

Describes events that cannot occur at the same time, meaning the occurrence of one event excludes the possibility of the other event happening.

P(A ∩ B)

The probability of the intersection of events A and B, representing the likelihood that both events occur simultaneously.

P(A ∪ B)

Represents the probability of the occurrence of at least one of two events, A or B, including the case where both events occur simultaneously.

P(A ∩ B)

The probability that events A and B both occur, also known as the intersection of A and B.