Answer the next question on the basis of the table below that shows the exchange rate between various currencies and the U.S.dollar
December 2015 Exchange Rate December 2016 Exchange Rate
Currency (dollars per unit of foreign currency) (dollars per unit of foreign currency)
Mexican peso $0.07 $0.09
Swiss franc $1.10 $1.05
Japanese yen $0.010 $0.012
British pound $1.64 $1.58
-A demand for U.S.dollars would result from
A) An American tourist visiting the British Museum in London
B) A Japanese investor purchasing German securities
C) Honda,a Japanese auto company,buying land in Alabama
D) Airbus,a European firm,selling jetliners to airlines in South Korea

Question

Answer the next question on the basis of the table below that shows the exchange rate between various currencies and the U.S.dollar
 December 2015 Exchange Rate December 2016 Exchange Rate
Currency (dollars per unit of foreign currency) (dollars per unit of foreign currency)
Mexican peso $0.07 $0.09
Swiss franc $1.10 $1.05
Japanese yen $0.010 $0.012
British pound $1.64 $1.58
-A demand for U.S.dollars would result from
A) An American tourist visiting the British Museum in London
B) A Japanese investor purchasing German securities
C) Honda,a Japanese auto company,buying land in Alabama
D) Airbus,a European firm,selling jetliners to airlines in South Korea

Quizplus · Accepted Answer

The demand for U.S. dollars would result from a Japanese company, Honda, buying land in Alabama since the transaction would require the exchange of Japanese yen for U.S. dollars. The other options involve transactions that do not require the exchange of currencies involving the U.S. dollar.

Answer the Next Question on the Basis of the Table