Match the event to the expected exchange rate effect between Japan (whose currency is the yen) and
Question:
Match the event to the expected exchange rate effect between Japan (whose currency is the yen) and South Africa (whose currency is the rand). Assume each has a floating exchange rate policy.
1. Japanese corporations buy South African software start-up companies.
a. Decreased demand for rand leads to revaluation of the yen and devaluation of the rand
b. Increased supply of yen leads to appreciation of the rand and depreciation of the yen
c. Decreased demand for rand leads to appreciation of the yen and depreciation of the rand
d. Increased supply of the rand leads to application of the yen and depreciation of the rand
e. Increased supply of yen leads to revaluation of the rand and devaluation of the yen
2. Japanese banks increase their interest rates.
a. Decreased demand for rand leads to revaluation of the yen and devaluation of the rand
b. Increased supply of yen leads to appreciation of the rand and depreciation of the yen
c. Decreased demand for rand leads to appreciation of the yen and depreciation of the rand
d. Increased supply of the rand leads to application of the yen and depreciation of the rand
e. Increased supply of yen leads to revaluation of the rand and devaluation of the yen
3. The South African Central Bank lowers interest rates.
a. Decreased demand for rand leads to revaluation of the yen and devaluation of the rand
b. Increased supply of yen leads to appreciation of the rand and depreciation of the yen
c. Decreased demand for rand leads to appreciation of the yen and depreciation of the rand
d. Increased supply of the rand leads to application of the yen and depreciation of the rand
e. Increased supply of yen leads to revaluation of the rand and devaluation of the yen
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello