Question: In December 2 0 1 6 the U . S . dollar was trading at 1 1 3 yen per dollar on the foreign exchange
In December the US dollar was trading at yen per dollar on the foreign exchange market. In September the US dollar was trading at yen per dollar.
What events in the foreign exchange market could have resulted in this change in the value of the US dollar?
A an increase in the Japanese interest rate and a rise in the expected future exchange rate of the US dollar
B an increase in the Japanese interest rate and a decrease in the US interest rate
C a decrease in the US interest rate and a decrease in the Japanese interest rate
D a rise in the expected future exchange rate of the US dollar and a decrease in the Japanese interest rate
These events that resulted in this change in the value of the US dollar changed
A only the demand for dollars
B both the demand for dollars and the supply of dollars
C only the supply of dollars
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