Which one of the following would result in the dollar appreciating against the Japanese yen?
A)a rise in the Canadian interest rate
B)a fall in the Canadian interest rate
C)a fall in the Japanese interest rate
D)a decrease in the expected future Canadian exchange rate
E)both A and C

Question

Quizplus · Accepted Answer

A rise in the Canadian interest rate (A) and a fall in the Japanese interest rate (C) would both lead to an appreciation of the dollar against the yen.

Which One of the Following Would Result in the Dollar