[whopper]

If the value of the US dollar in foreign currency markets changes from $1 = 95 yen to $1 = 90 yen,

which of the following is true?

a) US tourists in Japan will find their dollars will buy more Japanese products.

b) The Japanese yen has depreciated against the dollar.

c) US exports to Japan should decrease.

d) Japanese imported products in the US will become more expensive.

The answer is (d) but I do not understand why it cannot also be (b). Someone please explain.

REG - 89, 04/29/13
BEC - 81, 08/06/13
FAR - 84, 12/19/13
AUD - 82, 10/05/13

[pnielsen1982]

If it takes less yen to buy $1, hasn't the yen appreciated against the dollar? Not depreciated? If the market changed to $1 = 100 yen, then the yen would have depreciated against the dollar. I could be wrong, but I think that's the way it works.

CA licensed CPA

AUD - 08/31/13 - 84
BEC - 11/26/13 - 84
FAR - 08/10/14 - 85
REG - 11/30/14 - 72, 02/20/15 - 87

What have I gotten myself into?

[MCLKT]

In my mind depreciated means weakened.

If previously you had to spend 95 of your yen to get $1 but now you only need to spend 90 yen, then the dollar has weakened (depreciated). It's less valuable compared to yen. (Or vice versa, the yen has appreciated against the dollar).

Don't let it confuse you the way they word the questions or the answers for that matter. A-C are all saying the same thing.

The dollar has weakened, it won't go as far in Japan.

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[whopper]

ok thanks for the clarification! The verbiage on these questions sometimes throw me off lol

REG - 89, 04/29/13
BEC - 81, 08/06/13
FAR - 84, 12/19/13
AUD - 82, 10/05/13

[Author]

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