Asked by reddy chittamuru on Jul 09, 2024
Verified
In 1985, the exchange rate between the U.S. dollar and the Japanese yen was $1 = 262 yen; in 2003, the rate was $1 = 110 yen. Between 1985 and 2003, the
A) dollar appreciated in value relative to the yen.
B) yen appreciated in value relative to the dollar.
C) dollar price of yen fell.
D) yen price of dollars rose.
Exchange Rate
The price of one currency expressed in terms of another currency.
Appreciated
An increase in the value of an asset or currency in comparison to other assets, currencies, or benchmarks.
Yen
The official currency of Japan, used as a medium of exchange in one of the world's largest economies.
- Analyze the causes and effects of changes in exchange rates over time.
Verified Answer
AB
Alexander BigsbyJul 11, 2024
Final Answer :
B
Explanation :
The yen appreciated in value relative to the dollar because it took fewer yen to buy one dollar in 2003 (110 yen) compared to 1985 (262 yen).
Learning Objectives
- Analyze the causes and effects of changes in exchange rates over time.