If the Exchange Rate Between the Dollar and Yen Has

question 11

Multiple Choice

If the exchange rate between the dollar and yen has risen, this would be consistent with:

• A) a rise in the U.S. interest rate.
• B) a rise in U.S. inflation.
• C) a rise in the Japanese interest rate.
• D) a fall in Japanese inflation

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Definitions:

Paying Interest

The act of compensating lenders for the use of their funds, typically expressed as a percentage of the principal amount borrowed.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be converted to cash in the short term, such as property, plant, and equipment.

Investing Activities

Activities such as purchase and sale of plant and equipment and placing excess cash in stocks, bonds, and notes of other companies.

Purchase

A Purchase refers to the acquisition of goods or services in exchange for money, contributing to the assets or expenses of a business.