If the Exchange Rate Between the Dollar and the Yen

question 118

True/False

If the exchange rate between the dollar and the yen is ¥80 = $1 this week, and is ¥87 = $1 next week, we say that the dollar appreciated.

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Definitions:

Dealer

An individual or firm in the securities business who buys and sells securities for their own account, rather than for customers, thus acting as a principal in the transactions.

Money Market Instrument

Short-term debt instruments, typically with maturities of less than one year, traded in the money market, including treasury bills, commercial paper, and certificates of deposit.

Maturity

The expiration date of a financial instrument, at which point the principal is to be paid back to investors.

Emerging Market Country

Refers to a nation with social or business activity in the process of rapid growth and industrialization.