If the Exchange Rate Changes from 130 Yen Per Dollar

question 116

Multiple Choice

If the exchange rate changes from 130 yen per dollar to 150 yen per dollar,what has happened to the dollar?

• A) It has appreciated and so buys more Japanese goods.
• B) It has appreciated and so buys fewer Japanese goods.
• C) It has depreciated and so buys more Japanese goods.
• D) It has depreciated and so buys fewer Japanese goods.

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Definitions:

Simple Average

The arithmetic mean calculated by adding a group of numbers and then dividing by the count of those numbers.

Revolving Loan

A type of credit that allows the borrower to withdraw, repay, and redraw funds repeatedly up to a certain credit limit.

Average Balance

A calculation used by financial institutions to determine the average amount of money in an account over a specific period, often used to calculate interest charges or eligibility for benefits.

Portfolio

A collection of investments held by an individual or institution.