If the exchange rate between the Japanese Yen and the US Dollar changes from 100 to...
If the exchange rate between the Japanese Yen and the US Dollar changes from 100 to 110 yen per dollar, _____.
- A. the yen has appreciated against the dollar
- B. the dollar has depreciated against the yen
- C. the dollar has appreciated against the yen
- D. the cost of a yen has increased in terms of dollars
Homework Answers
The Correct Answer is C. the dollar has appreciated against the yen.
Firstly we need to understand that Dollar is the stronger currency here.
1 US dollars is equal to 100 Yen. So when this rate changes from 100 to 110 this means that dollar has become more stronger and Yen has become weaker or we can say that dollar has appreciated against the yen by increasing from 100 to 110.
Therefore it can be concluded that in the given case the dollar has appreciated against the yen.
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