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- Subject
- Foreign Exchangeeconomics-mcqs › foreign-exchange
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
If Canadians start demanding more Japanese computers, what is the likely effect on the demand for Japanese yen?
Multiple choice question for Foreign Exchange. Select an option, then review the explanation below.
Explanation
When Canadians purchase more Japanese computers, they need to exchange Canadian dollars for yen to pay Japanese sellers. This causes the demand for yen to increase as more buyers seek the currency to complete their purchases.
More Foreign Exchange MCQs
Practice related questions from the same subject.
- 1.In a floating exchange rate system, what is the typical trend observed regarding currency values?
- 2.What term describes the increase in the value of one currency compared to another?
- 3.What is the typical impact of a fiscal expansion in the UK on the value of the pound sterling?
- 4.What do we call exchange rates that fluctuate based solely on market supply and demand without government intervention?
- 5.What type of exchange rate system was established by the agreements made at the 1944 Bretton Woods conference?