Suppose That the Exchange Rate Between Japanese Yen and U

question 105

Multiple Choice

Suppose that the exchange rate between Japanese yen and U.S. dollars is originally 130 yen to the dollar. If it then changes to 150 yen to the dollar, exports of U.S. goods to Japan will tend to:

• A)​rise.
• B)​fall.
• C)​stay the same.
• D)​change in an indeterminate direction.

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Definitions:

Outstanding Stock

Shares of a company's stock that have been issued and are currently held by investors, including public shareholders and company insiders.

Parent

In financial terms, this refers to a parent company that owns enough voting stock in another company to control its operations and policies.

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.

Affiliate

A company that is controlled by a parent company or is closely related to another company through common ownership or control.