Asked by Barbara Circle on Jun 07, 2024
Verified
If yesterday the dollar traded for 100 Japanese yen and today 101 yen to the dollar,we would say
A) that the dollar rose in value (appreciated) relative to the yen.
B) that the yen fell in value (depreciated) relative to the dollar.
C) both of the choices are correct.
D) neither of the choices is correct.
Japanese Yen
The Japanese Yen is the official currency of Japan, known as one of the most traded currencies in the foreign exchange market.
Appreciated
Increased in value or price.
Traded
The action of buying, selling, or exchanging goods and services between people, businesses, or countries.
- Discern the factors that influence the valuation of the U.S. dollar and their ramifications for the economy.
Verified Answer
JG
Jenna GiammancoJun 12, 2024
Final Answer :
C
Explanation :
Both statements are correct because if you need more yen to buy a dollar, it means the dollar has appreciated in value relative to the yen, and conversely, the yen has depreciated relative to the dollar.
Learning Objectives
- Discern the factors that influence the valuation of the U.S. dollar and their ramifications for the economy.