The Decline in the Value of the Yen in 2014

question 228

Multiple Choice

The decline in the value of the yen in 2014 and 2015 occurred as a result of the Japanese central bank,the Bank of Japan,following an expansionary monetary policy.Investors expected that the result would be lower nominal Japanese interest rates and a higher inflation rate.In response,investors ________,causing the value of the yen to decline against the dollar.

• A)sold Japanese yen and bought U.S.dollars
• B)sold Japanese yen and sold U.S.dollars
• C)bought Japanese yen and sold U.S.dollars
• D)bought Japanese yen and bought U.S.dollars

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Definitions:

Intestate Succession

The process by which property is distributed by law when a person dies without a valid will, determining heirs based on their relationship to the deceased.

Testamentary Trust

A trust that is created by a will.

Conveyance in Trust

A legal arrangement where property is transferred to a trustee for the benefit of another party, often used in estate planning and asset protection.

Intervivos Trust

A trust created during the lifetime of the settlor, allowing the settlor to transfer assets before their death for the benefit of designated beneficiaries.