Americans buying Japanese cars:Group of answer choicesdemand U.S. dollars and supply Japanese yen.demand U.S. dollars and demand Japanese yen.Supply U.S. dollars and demand Japanese yen.Supply both U.S. dollars and Japanese yen.
Question
Americans buying Japanese cars:Group of answer choicesdemand U.S. dollars and supply Japanese yen.demand U.S. dollars and demand Japanese yen.Supply U.S. dollars and demand Japanese yen.Supply both U.S. dollars and Japanese yen.
Solution
When Americans buy Japanese cars, they "Supply U.S. dollars and demand Japanese yen." Here's why:
-
Americans pay for Japanese cars in U.S. dollars. This means they are supplying U.S. dollars to the market.
-
The Japanese car companies will then exchange these U.S. dollars for Japanese yen. This means there is a demand for Japanese yen.
So, in this transaction, U.S. dollars are being supplied and Japanese yen is being demanded.
Similar Questions
An appreciation of the dollar relative to the yen will benefit:A) a firm that sells in the United States but produces in JapanB) a firm that sells in the United States and produces in the United StatesC) a firm that produces in the United States and sells in JapanD) None of the above is correct
If the demand for dollars outstrips its supply and if the supply of Japanese yen is greater than the demand for it, what will happen? Select one: a. The dollar will appreciate against the yen. b. The exchange rates will remain the same. c. The dollar will depreciate against the yen. d. The yen will appreciate against the dollar.
When a smaller amount of a foreign currency is required to buy the Australian dollar, the currency is said to have _______ with respect to the dollar.Group of answer choicesdepreciatedremained fixedappreciatedconsolidated
What currency currently serves as the world’s primary vehicle currency?Video: 4.1.B. P5-27 (Foreign exchange market)Group of answer choicesb. British poundd. European euroa. Japanese yenc. U.S. Dollar
The Japanese government was pressured by the U.S. government to place limits on the number of vehicles exported to the United States by Japanese automobile producers in 1981. This is an example of:Question 2Select one:a.Ad valorem tariffs.b.Specific tariffs.c.A tariff rate quota.d.A voluntary export restraint.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.