Suppose that 144 yen could be purchased in the foreign exchange market for one U.S. dollars today. If the yen is expected to depreciate by 8 percent tomorrow, how many yen could one U.S. dollar buy tomorrow?
A) 155.5 yen
B) 144.0 yen
C) 72.0 yen
D) 133.5 yen
E) 78.0 yen

Question

Quizplus · Accepted Answer

If the yen depreciates by 8%, it means the value of the yen decreases, allowing more yen to be bought with one U.S. dollar. 144 yen * (1 + 0.08) = 155.52 yen, which rounds to 155.5 yen.

Suppose That 144 Yen Could Be Purchased in the Foreign