Asked by Kathy Garcia on Jul 26, 2024
Verified
If a Japanese importer could buy $1,000 U.S. for 122,000 yen, the rate of exchange for one dollar would be
A) 8.19 yen.
B) 122 yen.
C) 820 yen.
D) 1,220 yen.
Exchange Rate
The rate at which one currency can be exchanged for another, often fluctuating based on market conditions.
Japanese Importer
A business entity or individual in Japan that purchases goods from foreign countries for sale or use within Japan.
U.S. Dollars
The official currency of the United States, used as a standard monetary unit for global transactions.
- Understand how foreign exchange rates function and their influence on international commerce and financial movements.
Verified Answer
TW
Temesha WalkerJul 30, 2024
Final Answer :
B
Explanation :
The rate of exchange for one dollar is calculated by dividing the amount of yen exchanged by the amount of dollars received. In this case, 122,000 yen divided by $1,000 equals 122 yen per dollar.
Learning Objectives
- Understand how foreign exchange rates function and their influence on international commerce and financial movements.