Suppose That in 2002 the Exchange Rate Between the Canadian

question 26

Multiple Choice

Suppose that in 2002 the exchange rate between the Canadian dollar and the Japanese yen was
$1 = 220 yen,and in 2012 it was $1 = 100 yen.
-Refer to the above information.Which one of the following might be a plausible explanation for the change in the dollar-yen exchange rate cited in the previous question?

• A) Japan exported far more to Canada during this period than it imported from Canada.
• B) Japan greatly increased its purchases from Canada during this period.
• C) Japan's economy grew far faster than the Canadian economy during this period.
• D) Japan's government devalued the yen during this period.

---

Definitions:

Cost of Goods Sold

This refers to the total cost of all the ingredients or materials used to create a product, including labor and manufacturing overhead, subtracted from revenue to calculate gross profit.

Inventory

Inventory represents the goods and materials that a business holds for the ultimate goal of resale or production, encompassing raw materials, work-in-progress, and finished goods.

Accounts Receivable Turnover

A financial ratio indicating how many times a company collects its average accounts receivable during a period.

Accounts Receivable

Debt that customers hold towards a business for received goods or services which remain unpaid.