Under a Flexible Exchange-Rate System,an Increase in the Demand for Japanese

question 82

Multiple Choice

Under a flexible exchange-rate system,an increase in the demand for Japanese yen would cause the U.S.dollar-Japanese yen exchange rate to

• A)fall.
• B)rise.
• C)remain unchanged, because supply also increases.
• D)remain unchanged, because the exchange rate is set by the central bank.

---

Definitions:

Investors

Persons or organizations that invest funds hoping to gain financial profits.

AUM

The cumulative market value of all investments managed by an individual or organization for its clients.

Net IRR

Net Internal Rate of Return is a performance measure that calculates the profitability of an investment adjusted for all cash flows and costs incurred.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns, which can involve a variety of assets including stocks, bonds, and real estate.