Suppose one U.S.dollar can purchase 144 yen today in the foreign exchange market.If the yen depreciates by 8.0% tomorrow, how many yen could one U.S.dollar buy tomorrow?
A) 155.5 yen
B) 144.0 yen
C) 133.5 yen
D) 78.0 yen
E) 72.0 yen

Question

Quizplus · Accepted Answer

If the yen depreciates by 8.0%, it means the value of yen decreases, making the dollar stronger in comparison. Therefore, 1 U.S. dollar could buy more yen. The calculation is 144 yen * 1.08 = 155.52 yen, which rounds to 155.5 yen, indicating the dollar can buy more yen after the depreciation.

Suppose One U