If the foreign exchange rate between the Japanese yen and the US dollar went from 100 yen=1 .
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1 mark, −0.33International EconomicsBalance of payments and exchange ratesExchange rate conceptsModerateabout 1 min
UoH 2010 Question 40: Balance of payments and exchange rates
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If the foreign exchange rate between the Japanese yen and the US dollar went from 100 yen=1. to 200 yen = 1. (A) More Japanese electronics goods would be sold in the US market. (B) More US super computers would be sold in Japan. (C) Trade would not be affected. (D) Fewer Japanese electronics goods would be sold in the US market.
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What this question tests
This question is on Exchange rate concepts, part of Balance of payments and exchange rates in International Economics.
Nominal, real and effective exchange rates and how they are quoted and converted.
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