Question: If a bundle of goods in Japan costs 4 000 000
If a bundle of goods in Japan costs ¥ 4,000,000 while the same goods and services cost $ 40,000 in the United States, what is the current exchange rate of U.S. dollars for yen? If, over the next year, inflation is 6 percent in Japan and 10 percent in the United States, what will the goods cost next year? Will the dollar depreciate or appreciate relative to the yen over this time period?
Answer to relevant QuestionsThe following table lists balance of payment current accounts for Country A.a. What is Country A’s total current accounts? b. What is Country A’s balance on goods? c. What is Country A’s balance on services? d. What ...East Bank has purchased a 5 million one-year Swiss franc (Sf) loan that pays 6 percent interest annually. The spot rate of U.S. dollars for Swiss francs is 0.9691. It has funded this loan by accepting a Canadian dollar (C$) ...The following are the foreign currency positions of an FI, expressed in the foreign currency.The exchange rate of dollars per Sf is 0.9301, of dollars per British pound is 1.6400, and of dollars per yen is 0.010600.The ...What are the differences between a spot contract, a forward contract, and a futures contract? What are the differences between a cap, a floor, and a collar? When would a firm enter any of these derivative security positions?
Post your question