Deck 12: Exchange Rate Determination

Question 1

The international exchange value of the U.S.dollar is determined by

A) the rate of inflation in the United States.
B) the number of dollars printed by the U.S. government.
C) the international demand and supply for dollars.
D) the monetary value of gold held at Fort Knox, Kentucky.

Answer 1

the international demand and supply for dollars.

Question 2

Assume that the United States faces an 8 percent inflation rate, while no (zero) inflation exists in Japan.According to the purchasing-power parity theory, the dollar would be expected to

A) appreciate by 8 percent against the yen.
B) depreciate by 8 percent against the yen.
C) depreciate by 7 percent against the yen.
D) appreciate by 7 percent against the yen.

Answer 2

depreciate by 8 percent against the yen.

Question 3

Given a system of floating exchange rates, stronger U.S.preferences for imports would trigger

A) an increase in the demand for imports and an increase in the demand for foreign currency.
B) an increase in the demand for imports and a decrease in the demand for foreign currency.
C) a decrease in the demand for imports and an increase in the demand for foreign currency.
D) a decrease in the demand for imports and a decrease in the demand for foreign currency.

Answer 3

an increase in the demand for imports and an increase in the demand for foreign currency.

Question 4

If Canada runs a trade surplus with Mexico, and exchange rates are floating, then

A) the peso will depreciate relative to the dollar.
B) the dollar will depreciate relative to the peso.
C) the prices of all foreign goods will fall for Canadians.
D) the prices of all foreign goods will rise for Canadians.

Question 5

When the price of foreign currency (i.e., the exchange rate) is below the equilibrium level,

A) an excess demand for that currency exists in the foreign exchange market.
B) an excess supply of that currency exists in the foreign exchange market.
C) the demand for foreign exchange shifts outward to the right.
D) the demand for foreign exchange shifts backward to the left.

Question 6

When the price of foreign currency (i.e., the exchange rate) is above the equilibrium level,

A) an excess supply of that currency exists in the foreign exchange market.
B) an excess demand for that currency exists in the foreign exchange market.
C) the supply of foreign exchange shifts outward to the right.
D) the supply of foreign exchange shifts backward to the left.

Question 7

For the United States, suppose the annual interest rate on government securities equals 12 percent, while the annual inflation rate equals 8 percent.For Japan, suppose the annual interest rate equals 5 percent.These variables would cause investment funds to flow from

A) the United States to Japan, thus causing the dollar to depreciate.
B) the United States to Japan, thus causing the dollar to appreciate.
C) Japan to the United States, thus causing the yen to depreciate.
D) Japan to the United States, thus causing the yen to appreciate.

Question 8

High real interest rates in the United States tend to

A) decrease the demand for dollars, thus causing the dollar to depreciate.
B) decrease the demand for dollars, thus causing the dollar to appreciate.
C) increase the demand for dollars, thus causing the dollar to depreciate.
D) increase the demand for dollars, thus causing the dollar to appreciate.

Question 9

For the United States, suppose the annual interest rate on government securities equals 8 percent, while the annual inflation rate equals 4 percent.For Japan, suppose the annual interest rate on government securities equals 10 percent, while the annual inflation rate equals 7 percent.These variables would cause investment funds to flow from

A) the United States to Japan, thus causing the dollar to depreciate.
B) the United States to Japan, thus causing the dollar to appreciate.
C) Japan to the United States, thus causing the yen to depreciate.
D) Japan to the United States, thus causing the yen to appreciate.

Question 10

If Mexico's labor productivity rises relative to Europe's labor productivity, then

A) the peso tends to depreciate against the euro in the short run.
B) the peso tends to appreciate against the euro in the short run.
C) the peso tends to depreciate against the euro in the long run.
D) the peso tends to appreciate against the euro in the long run.

Question 11

Suppose Mexico and the United States were the only two countries in the world.There exists an excess supply of pesos on the foreign exchange market.This suggests that

A) Mexico's current account is in surplus.
B) Mexico's current account is in deficit.
C) the U.S. current account is in deficit.
D) the U.S. current account is in equilibrium.

Question 12

The appreciation in the value of the dollar in the early 1980s is explained by all of the following EXCEPT relatively high inflation rates in the United States.

A) the United States being considered a safe haven by foreign investors.
B) relatively high real interest rates in the United States.
C) confidence of foreign investors in the U.S. economy.
D) relatively high inflation rates in the United States.

Question 13

Low real interest rates in the United States tend to

A) decrease the demand for dollars, thus causing the dollar to depreciate.
B) decrease the demand for dollars, thus causing the dollar to appreciate.
C) increase the demand for dollars, thus causing the dollar to depreciate.
D) increase the demand for dollars, thus causing the dollar to appreciate.

Question 14

The high foreign exchange value of the U.S.dollar in the early 1980s can best be explained by

A) additional investment funds made available from overseas.
B) lack of investor confidence in U.S. fiscal policy.
C) market expectations of rising inflation in the United States.
D) American tourists overseas finding costs increasing.

Question 15

If wheat costs four dollars per bushel in the United States and two British pounds per bushel in Great Britain, then in the presence of purchasing-power parity the exchange rate should be

A) $.50 per pound.
B) $1.00 per pound.
C) $2.00 per pound.
D) $8.00 per pound.

Question 16

If the exchange rate between Swiss francs and British pounds is five francs per pound, then the number of pounds that can be obtained for 200 francs equals

A) 20 pounds.
B) 40 pounds.
C) 60 pounds.
D) 80 pounds.

Question 17

In the presence of purchasing-power parity, if one dollar exchanges for two British pounds and if a VCR costs $400 in the United States, then in Great Britain the VCR should cost

A) 200 pounds.
B) 400 pounds.
C) 600 pounds.
D) 800 pounds.

Question 18

The relationship between the exchange rate and the prices of tradable goods is known as the

A) purchasing-power-parity theory.
B) asset-markets theory.
C) monetary theory.
D) balance-of-payments theory.

Question 19

Given a system of floating exchange rates, weaker U.S.preferences for imports would trigger

A) an increase in the demand for imports and an increase in the demand for foreign currency.
B) an increase in the demand for imports and a decrease in the demand for foreign currency.
C) a decrease in the demand for imports and an increase in the demand for foreign currency.
D) a decrease in the demand for imports and a decrease in the demand for foreign currency.

Question 20

A primary reason that explains the appreciation in the value of the U.S.dollar in the 1980s is

A) large trade surpluses for the United States.
B) relatively high inflation rates in the United States.
C) lack of investor confidence in the U.S. monetary policy.
D) relatively high interest rates in the United States.

Question 21

According to the purchasing-power-parity theory, the U.S.dollar maintains its purchasing-power parity if it depreciates by an amount equal to the excess of

A) U.S. interest rates over foreign interest rates.
B) foreign interest rates over U.S. interest rates.
C) U.S. inflation over foreign inflation.
D) foreign inflation over U.S. inflation.

Question 22

Which example of market expectations causes the dollar to appreciate against the yen? Expectations that the U.S.economy will have

A) faster economic growth than Japan.
B) higher future interest rates than Japan.
C) more rapid money supply growth than Japan.
D) higher inflation rates than Japan.

Question 23

Under a system of floating exchange rates, relatively low productivity and high inflation rates in the United States result in

A) an increase in the demand for foreign currency, a decrease in the supply of foreign currency, and a depreciation in the dollar.
B) an increase in the demand for foreign currency, an increase in the supply of foreign currency, and an appreciation in the dollar.
C) a decrease in the demand for foreign currency, a decrease in the supply of foreign currency, and a depreciation in the dollar.
D) a decrease in the demand for foreign currency, an increase in the supply of foreign currency, and an appreciation in the dollar.

Question 24

For an American investor, the expected rate of return on European securities depends on all of the following factors EXCEPT the

A) rate of return on equivalent American securities.
B) current exchange rate between the dollar and the pound.
C) exchange rate anticipated to prevail when the securities mature.
D) interest rate paid on European securities.

Question 25

An exchange rate is said to ____ when its short-run response to a change in market fundamentals is greater than its long-run response.

A) overshoot
B) undershoot
C) depreciate
D) appreciate

Question 26

Under a system of floating exchange rates, relatively high productivity and low inflation rates in the United States result in

A) an increase in the demand for foreign currency, a decrease in the supply of foreign currency, and a depreciation in the dollar.
B) an increase in the demand for foreign currency, an increase in the supply of foreign currency, and an appreciation in the dollar.
C) a decrease in the demand for foreign currency, a decrease in the supply of foreign currency, and a depreciation in the dollar.
D) a decrease in the demand for foreign currency, an increase in the supply of foreign currency, and an appreciation in the dollar.

Question 27

Which theory of exchange-rate determination best views the foreign exchange market as being similar to a stock exchange where future expectations are important and prices are volatile?

A) balance-of-payments approach
B) purchasing-power-parity approach
C) asset-markets approach
D) monetary approach

Question 28

The Canadian dollar would depreciate on the foreign exchange market if

A) Canadian consumer tastes change in favor of goods produced domestically.
B) the profitability of assets in Canada rises relative to the profitability of assets abroad.
C) Canada experiences a disastrous wheat-crop failure, thus leading to imports of more wheat.
D) Canada realizes technological improvements in the production of manufactured goods, thus leading to relatively low costs for Canada.

Question 29

Long-run exchange rate movements are governed by all of the following EXCEPT

A) national productivity levels.
B) consumer tastes and preferences.
C) rates of inflation.
D) interest rate levels.

Question 30

Long-run determinants of the dollar's exchange value include all of the following EXCEPT

A) preferences of Americans for foreign produced goods.
B) U.S. tariffs placed on imports of foreign produced goods.
C) productivity of the American worker.
D) interest rates in U.S. financial markets.

Question 31

Concerning exchange rate forecasting, ____ relies on econometric models that are based on macroeconomic variables likely to affect currency values.

A) fundamental analysis
B) technical analysis
C) judgmental analysis
D) sunspot analysis

Question 32

Concerning exchange-rate determination, "market fundamentals" include all of the following EXCEPT

A) monetary policy and fiscal policy.
B) profitability and riskiness of investments.
C) speculative opinion about future exchange rates.
D) productivity changes affecting production costs.

Question 33

That identical goods should cost the same in all nations, assuming it is costless to ship goods between nations and there are no barriers to trade, is a reflection of the

A) monetary approach to exchange-rate determination.
B) law of one price.
C) fundamentalist approach to exchange-rate determination.
D) exchange-rate-overshooting principle.

Question 34

Which of the following is likely to result in long-run depreciation of the U.S.dollar relative to the euro?

A) relatively low interest rates in the United States
B) relatively high labor productivity in the United States
C) tariffs levied by the United States on steel imports from Europe
D) stronger American preferences for goods produced in Europe

Question 35

Which example of market expectations causes the dollar to depreciate against the yen? Expectations that the U.S.economy will have

A) faster economic growth than Japan.
B) higher future interest rates than Japan.
C) less rapid money supply growth than Japan.
D) lower inflation rates than Japan.

Question 36

Concerning exchange rate forecasting, ____ involves the use of historical exchange rate data to estimate future values, while ignoring the economic determinants of exchange rate movements.

A) econometric analysis
B) judgmental analysis
C) technical analysis
D) sunspot analysis

Question 37

Which of the following is likely to result in long-run appreciation of the U.S.dollar relative to the peso?

A) relatively high interest rates in Mexico
B) relatively high labor productivity in Mexico
C) tariffs applied by Mexico on computer imports from the United States
D) stronger Mexican preferences for goods produced in the United States

Question 38

In the short run, exchange rates respond to market forces, such as

A) inflation rates.
B) expectations of future exchange rates.
C) investment profitability.
D) government trade policy.

Question 39

Concerning exchange rate forecasting, ____ is a common-sense approach based on a wide array of political and economic data.

A) econometric analysis
B) technical analysis
C) judgmental analysis
D) sunspot analysis

Question 40

Exchange rate determination in the short run is underlied by which of the following?

A) Tariffs and quotas affect trade patterns only in the short run.
B) Prices of goods and services affect trade patterns only in the short run.
C) Expected returns on financial assets affect investment flows in the short run.
D) Preferences for goods and services affect trade flows only in the short run.

Question 41

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Figure 12.1 The Market for Francs
Refer to Figure 12.1.If Switzerland experienced a disastrous wheat-crop failure, leading to additional wheat imports from the United States, there would occur an

A) increase in the supply of francs and an appreciation of the dollar.
B) increase in the supply of francs and a depreciation of the dollar.
C) increase in the demand for francs and a depreciation of the dollar.
D) increase in the demand for francs and an appreciation of the dollar.

Question 42

Assume that interest rates in the United States and Britain are the same.If a U.S.resident anticipates that the exchange value of the dollar is going to appreciate against the pound, she should

A) borrow needed funds from British banks rather than U.S. banks.
B) borrow needed funds from U.S. banks rather than British banks.
C) convert U.S. dollars into British pounds.
D) use currencies other than dollars and pounds.

Question 43

The quantity of Canadian dollars supplied to the foreign exchange market would increase if, other things remaining equal

A) preferences for imports rise in Canada.
B) labor productivity increases in Canada.
C) prices of goods and services decrease in Canada.
D) import tariffs rise in Canada.

Question 44

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Figure 12.1 The Market for Francs
Refer to Figure 12.1.Should real interest rates in the United States rise relative to real interest rates in Switzerland, there would occur a(n)

A) increase in the demand for francs and a decrease in the supply of francs-depreciation of the dollar.
B) increase in the demand for francs and a decrease in the supply of francs-appreciation of the dollar.
C) decrease in the demand for francs and an increase in the supply of francs-appreciation of the dollar.
D) decrease in the demand for francs and a decrease in the supply of francs-depreciation of the dollar.

Question 45

Given floating exchange rates, assume that the Swiss decrease their import purchases from Italy while the Italians increase their purchases of Swiss government securities.The first action by itself would lead to a(n) ____ of the franc against the lira while the second action by itself would lead to a(n) ____ of the franc against the lira.

A) appreciation, appreciation
B) depreciation, depreciation
C) appreciation, depreciation
D) depreciation, appreciation

Question 46

Given floating exchange rates, a simultaneous decrease in the Canadian demand for British products and increase in the British desire to invest in Canadian government securities would cause a(n)

A) appreciation of the pound against the dollar.
B) depreciation of the pound against the dollar.
C) unchanged pound/dollar exchange rate.
D) appreciation of both the pound and dollar.

Question 47

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Figure 12.1 The Market for Francs
Refer to Figure 12.1.Should preferences for imports rise in the United States and fall in Switzerland, there would occur a(n)

A) increase in the demand for francs and a decrease in the supply of francs-depreciation of the dollar.
B) increase in the demand for francs and a decrease in the supply of francs-appreciation of the dollar.
C) decrease in the demand for francs and a decrease in the supply of francs-appreciation of the dollar.
D) decrease in the demand for francs and a increase in the supply of francs-depreciation of the dollar.

Question 48

The U.S.demand for pesos would shift to the right if there occurred a(n)

A) change in preferences toward U.S. manufactured goods.
B) increase in the dollar/peso exchange rate.
C) decrease in the U.S. population.
D) increase in the U.S. price level.

Question 49

Given a system of floating exchange rates, assume that Boeing Inc.of the United States places a large order, payable in yen, with a Japanese contractor for jet engine parts.The immediate effect of this transaction will be a shift in the

A) supply curve of yen to the left, which causes the dollar to appreciate against the yen.
B) supply curve of yen to the right, which causes the dollar to depreciate against the yen.
C) demand curve for yen to the left, which causes the dollar to appreciate against the yen.
D) demand curve for yen to the right, which causes the dollar to depreciate against the yen.

Question 50

Given a system of floating exchange rates, if Canada's labor productivity rises relative to the labor productivity of its trading partners, then

A) Canadian imports will fall, and the dollar will appreciate.
B) Canadian imports will fall, and the dollar will depreciate.
C) Canadian imports will rise, and the dollar will appreciate.
D) Canadian imports will rise, and the dollar will depreciate.

Question 51

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Figure 12.1 The Market for Francs
Refer to Figure 12.1.Should the U.S.price level rise relative to the Swiss price level, there would occur a(n)

A) increase in the demand for francs and an increase in the supply of francs-appreciation of the dollar.
B) decrease in the demand for francs and a decrease in the supply of francs-depreciation of the dollar.
C) increase in the supply of francs and a decrease in the demand for francs-appreciation of the dollar.
D) decrease in the supply of francs and an increase in the demand for francs-depreciation of the dollar.

Question 52

Assume a system of floating exchange rates.Due to a high savings rate, suppose the level of savings in Japan is in excess of domestic investment needs.If Japanese residents invest abroad, then the yen's exchange value will ____ , and the Japanese trade balance will move toward ____.

A) appreciate, deficit
B) appreciate, surplus
C) depreciate, deficit
D) depreciate, surplus

Question 53

The demand in the United States for yen will increase if, other things remaining equal

A) labor costs rise in Japan.
B) income rises in Japan.
C) prices rise in Japan.
D) interest rates rise in Japan.

Question 54

Assume that labor productivity growth is slower in the United States than in its trading partners.Given a system of floating exchange rates, the impact of this growth differential for the United States will be

A) increased exports and an appreciation of the dollar.
B) increased exports and a depreciation of the dollar.
C) increased imports and an appreciation of the dollar.
D) increased imports and a depreciation of the dollar.

Question 55

For purchasing-power parity to exist,

A) flows of currency in the trade account must be offset by flows of currency in the capital account.
B) the nominal interest rate must be equal to the real interest rate in all countries.
C) converting a sum of funds from one currency to another does not alter its purchasing power.
D) a country's trade account must always be in balance.

Question 56

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Figure 12.1 The Market for Francs
Refer to Figure 12.1.Should the United States impose tariffs on imports from Switzerland, there would occur a(n)

A) increase in the demand for francs and a depreciation of the dollar.
B) decrease in the demand for francs and an appreciation of the dollar.
C) decrease in the supply of francs and an appreciation of the dollar.
D) increase in the supply of francs and a depreciation of the dollar.

Question 57

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Figure 12.1 The Market for Francs
Refer to Figure 12.1.Should Swiss labor productivity rise, leading to a decrease in Swiss manufacturing costs, there would occur a(n)

A) increase in the supply of francs and a depreciation of the dollar.
B) increase in the supply of francs and an appreciation of the dollar.
C) decrease in the demand for francs and an appreciation of the dollar.
D) increase in the demand for francs and a depreciation of the dollar.

Question 58

Suppose the exchange rate between the U.S.dollar and the Japanese yen is initially 90 yen per dollar.According to purchasing-power parity, if the price of traded goods rises by 10 percent in the United States and remains constant in Japan, then the exchange rate will become

A) 72 yen per dollar.
B) 81 yen per dollar.
C) 99 yen per dollar.
D) 108 yen per dollar.

Question 59

The supply of francs would shift to the right for all of the following reasons EXCEPT

A) an increase in swiss real income.
B) an increase in swiss prices.
C) an increase in the swiss population.
D) an increase in swiss interest rates.

Question 60

Given floating exchange rates, if Japan increases its demand for Canadian goods at the same time that Canada increases its demand for Japanese goods, then we would expect the yen's exchange value to

A) appreciate against the dollar.
B) depreciate against the dollar.
C) remain constant against the dollar.
D) appreciate, depreciate, or remain constant against the dollar.

Question 61

Suppose that the yen-dollar exchange rate changes from 85 yen per dollar to 80 yen per dollar.One can say that the

A) yen has appreciated against the dollar, and the dollar has depreciated against the yen.
B) yen has depreciated against the dollar, and the dollar has appreciated against the yen.
C) yen has appreciated against the dollar, and the dollar has appreciated against the yen.
D) yen has depreciated against the dollar, and the dollar has depreciated against the yen.

Question 62

During the Great Recession of 2008-2009, the dollar increasingly was viewed as a safe-haven currency, as investors fled to it when they worried about the stability of the global economy.As investors fled to the dollar,

A) the demand for dollars increased and the dollar's exchange value appreciated.
B) the demand for dollars increased and the dollar's exchange value depreciated.
C) the demand for dollars decreased and the dollar's exchange value appreciated.
D) the demand for dollars decreased the dollar's exchange value depreciated.

Question 63

Suppose the exchange rate between the U.S.dollar and the Japanese yen is initially 90 yen per dollar.According to purchasing-power parity, if the price of traded goods rises by 5 percent in the United States and 15 percent in Japan, then the exchange rate will become

A) 72 yen per dollar.
B) 81 yen per dollar.
C) 99 yen per dollar.
D) 108 yen per dollar.

Question 64

All of the following are important long-run determinants of exchange rates EXCEPT

A) consumer tastes.
B) trade policy.
C) labor productivity.
D) interest rates.

Question 65

In the long run, exchange rates are primarily determined by

A) agreements among governments of the world's industrial countries.
B) relative interest rates in developing countries and industrial countries.
C) economic fundamentals, such as relative productivity levels.
D) the rate at which country's currencies exchange for gold.

Question 66

Under a system of floating exchange rates, a Japanese trade surplus against Canada would result in a(n)

A) rise in the dollar price of the yen.
B) fall in the dollar price of the yen.
C) rise in the yen price of the dollar.
D) unchanged dollar/yen exchange rate.

Question 67

Figure 12.3 Market for British Pounds
​
Consider Figure 12.3.The market is initially governed by demand curve D₀ and supply curve S₀.Suppose the US government raises tariffs for UK made goods, which supply and demand curves depict the new situation?

A) S₁ and D₂
B) S₂ and D₁
C) S₀ and D₂
D) S₀ and D₁

Question 68

The asset market theory of exchange rate determination suggests that the most important factor influencing the demand for domestic and foreign securities is

A) expected return on these assets relative to one another.
B) ability of these assets to easily be converted into cash.
C) riskiness of these assets relative to one another.
D) level of government restrictions on trade and investment flows.

Question 69

Figure 12.3 Market for British Pounds
​
Consider Figure 12.3.The market is initially governed by demand curve D₀ and supply curve S₀.Suppose US productivity growth is faster than the UK, which supply and demand curves depict the new situation?

A) S₁ and D₂
B) S₂ and D₁
C) S₀ and D₂
D) S₀ and D₁

Question 70

Relatively high interest rates in the United States cause the dollar to ____ in the ____.

A) appreciate, long run
B) depreciate, long run
C) appreciate, short run
D) depreciate, short run

Question 71

Lower tariffs on U.S.agricultural imports cause the dollar to ____ in the ____.

A) appreciate, long run
B) depreciate, long run
C) appreciate, short run
D) depreciate, short run

Question 72

Given a floating exchange rate system, an increase in ____ would cause the dollar to appreciate against the euro.

A) U.S. labor costs
B) the U.S. money supply
C) U.S. prices of goods
D) U.S. real interest rates

Question 73

Increased tariffs on U.S.steel imports cause the dollar to ____ in the ____.

A) appreciate, long run
B) depreciate, long run
C) appreciate, short run
D) depreciate, short run

Question 74

Which is NOT true about the purchasing-power parity theory?

A) The problem of choosing the appropriate price index exists.
B) It overlooks the influence of capital flows.
C) The government policy may modify exchange rates.
D) It is an infallible guide to exchange rate determination.

Question 75

Figure 12.3 Market for British Pounds
​
Consider Figure 12.3.The market is initially governed by demand curve D₀ and supply curve S₀.Suppose the domestic price level rises rapidly in the United States but stays relatively constant in the United Kingdom, which supply and demand curves depict the new situation?

A) S₁ and D₂
B) S₂ and D₁
C) S₀ and D₂
D) S₀ and D₁

Question 76

With floating exchange rates, easy credit and low short-term interest rates lead to

A) exchange rate depreciation in the short run.
B) exchange rate appreciation in the short run.
C) exchange rate depreciation in the long run.
D) exchange rate appreciation in the long run.

Question 77

With floating exchange rates, relatively high productivity growth for a nation leads to

A) exchange rate depreciation in the short run.
B) exchange rate appreciation in the short run.
C) exchange rate depreciation in the long run.
D) exchange rate appreciation in the long run.

Question 78

When deciding between U.S.and British government securities, an American investor typically considers

A) U.S. and British interest rates and anticipated changes in the exchange rate.
B) budget deficits of the U.S. government and British government.
C) shifts in the demand for U.S. goods and British goods.
D) U.S. and British inflation rates and anticipated changes in the exchange rate.

Question 79

Figure 12.3 Market for British Pounds
​
Consider Figure 12.3.The market is initially governed by demand curve D₀ and supply curve S₀.Suppose US consumers develop stronger preferences for UK made goods, which supply and demand curves depict the new situation?

A) S₁ and D₂
B) S₂ and D₁
C) S₀ and D₂
D) S₀ and D₁

Question 80

Suppose the exchange rate between the U.S.dollar and the Japanese yen is initially 90 yen per dollar.According to purchasing power parity, if the price of traded goods falls by 5 percent in the United States and rises by 5 percent in Japan, then the exchange rate will become

A) 72 yen per dollar.
B) 81 yen per dollar.
C) 99 yen per dollar.
D) 108 yen per dollar.