Question: On August 3, 2010, the U.S. dollar was trading at 86 yen per U.S. dollar on the foreign exchange market. On September 13, 2010, the

On August 3, 2010, the U.S. dollar was trading at 86 yen per U.S. dollar on the foreign exchange market. On September 13, 2010, the U.S. dollar was trading at 83 yen per U.S. dollar.
a. What events in the foreign exchange market might have brought this fall in the value of the U.S. dollar?
b. Did the events change the demand for U.S. dollars, the supply of U.S. dollars, or both demand and supply on the foreign exchange market?

Step by Step Solution

★★★★★

3.48 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a The fall in the US exchange rate is the result of a decrease in the demand for US dollars andor a... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

698-B-E-M-E (5207).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Multiple Choice Questions: 1. Suppose that the dollar rises from 100 to 125 yen. As a result? a. Exports to Japan will likely increase. b. Japanese tourists will be more likely to visit the United...

Multiple Choice Questions: 1. If the rate of inflation in the United States falls relative to the rate of inflation in foreign nations, U.S. net exports will tend to ___________, causing the exchange...

Multiple Choice Questions: 1. If high-yield investment opportunities attract capital from abroad and lead to a capital account surplus, then the a. Nations currency must appreciate. b. Nations...

On August 3, 2010, the U.S. dollar was trading at 86 yen per U.S. dollar on the foreign exchange market. On September 13, 2010, the U.S. dollar was trading at 83 yen per U.S. dollar. (5) a. What...

On August 3, 2010, the U.S. dollar was trading at 86 yen per U.S. dollar on the foreign exchange market. On September 13, 2010, the U.S. dollar was trading at 83 yen per U.S. dollar. Did the events...

1.4 On 3 August 2010, the US dollar was trading at 86 yen per US dollar on the foreign exchange market. On 13 September 2010, the US dollar was trading at 83 yen per US dollar. a What events in the...

In December 2 0 1 6 the U . S . dollar was trading at 1 1 3 yen per dollar on the foreign exchange market. In September 2 0 1 7 , the U . S . dollar was trading at 1 1 0 yen per dollar. What events...

On March 30, 2012, the U.S. dollar was trading at 82 yen per U.S. dollar on the foreign exchange market. On August 30, 2012, the U.S. dollar was trading at 79 yen per U.S. dollar. a. What events in...

On March 13, 2020, you convert 660,000 US dollars to Japanese yen in the spot foreign exchange market and purchase a six-month forward contract to convert yen into dollars. How much will you receive...

On March 13, 2020, you convert 570,000 US dollars to Japanese yen in the spot foreign exchange market and purchase a six-month forward contract to convert yen into dollars. How much will you receive...

Mathari hospital in Nairobi is well known for offering mental healthcare to Kenyans for decades. As a public hospital, it is well frequented by many patients and their families due to the topnotch...

Give some of the reasons that there are no really effective human vaccines so far for parasitic infections.

Whicj system gives the modt power to state? A . Confederal B . Federal C . Unitary

A (an) ________ arises because of the existence of economies of scale in which the LRAC falls as production increases. As a result, smaller firms leave the industry, new firms fear competing with the...

As the chapter states, GDP does not include the value of used goods that are resold. Why would including such transactions make GDP a less informative measure of economic well-being?

Below are some data from the land of milk and honey. a. Compute nominal GDP, real GDP, and the GDP deflator for each year, using 2010 as the base year. b. Compute the percentage change in nominal...

Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $4. In year 2, the quantity produced is 4 bars and the price is $5. In year 3, the...

me to understand how to calculate the cost-benefit ratio of a homework assignment. Week 9 Application Assignment (23 pages) and Scenarios Time-Value Formulas and Cost-Benefit Analysis Scenario 1:...

The Stewart Company has $1,835,000 in current assets and $734,000 in current liabilities. Its initial inventory level is $403,700, and it will raise funds as additional notes payable and use them to...

A government can take several steps to reduce asymmetric information problems. Which of the following is least likely to be observed in a nation like Canada? A. Regulations that limit bank risk...