Which of the following is an example of currency manipulation that would likely move Japan's trade balance to a trade surplus?
A) when Japan buys yen and sells dollars
B) when Japan sells U.S. treasuries
C) when Japan buys yen and sells U.S. treasuries
D) when Japan buys U.S. treasuries and sells yen

Question

Quizplus · Accepted Answer

When Japan buys U.S. treasuries and sells yen, it increases the supply of yen, potentially devaluing it, making Japanese exports cheaper and imports more expensive, which can lead to a trade surplus.

Which of the Following Is an Example of Currency Manipulation