Question

3 Part Question

1) Choose the correct statement based on the following information:

Last year you could get 110 yen for $1. This year you can get 120 yen for $1.

Group of answer choices

a)The dollar depreciated against the yen and the yen depreciated against the dollar

b)The dollar appreciated against the yen and the yen appreciated against the dollar

c)The dollar depreciated against the yen and the yen appreciated against the dollar

d)The dollar appreciated against the yen and the yen depreciated against the dollar

2)Determine what would happen to exchange rates based on the following information:

US inflation rate = 3%

Japan inflation rate = 10%

(note that the Japanese currency is known as the Yen)

Group of answer choices

a)The dollar will depreciate against the yen and the yen will depreciated against the dollar

b)The dollar will appreciate against the yen and the yen will appreciate against the dollar

c)The dollar will depreciate against the yen and the yen will appreciate against the dollar

d)The dollar will appreciate against the yen and the yen will depreciate against the dollar

3)Which of the following illustrates an example of dumping?

Group of answer choices

a)Selling a pencil to a foreign country

b)Paying $1 per unit to manufacture a pencil and selling that pencil overseas for $1.00

c)Paying $1 per unit to manufacture a pencil and selling that pencil overseas for $.75

d)Paying $1 per unit to manufacture a pencil and selling that pencil overseas for $1.75

Answer 1

I will appreciate if give positive rating

Answer Option D) The dollar appreciated against the yen and the yen depreciated against the dollar

Last year you could get 110 yen for $1. This year you can get 120 yen for $1 . It represents that the dollar appreciated against the yen and the yen depreciated against the dollar. The reason is that now, value of Yen has decreases as now for the same USD , more Yen are needed.

Answer Option d)The dollar will appreciate against the yen and the yen will depreciate against the dollar

Answer Option C) Paying $1 per unit to manufacture a pencil and selling that pencil overseas for $.75

The reason is that dumping means to sale the product in the international market at less rate. Even the cost is incurred by the domestic company