If the Fed wants to depreciate the dollar against the yen, the Fed will
A) increase the supply of dollars by selling yen.
B) increase the demand for dollars by selling yen.
C) decrease the supply of dollars by selling yen.
D) increase the supply of dollars by buying yen.

Question

Quizplus · Accepted Answer

To depreciate the dollar against the yen, the Fed would increase the supply of dollars by buying yen, which would lower the dollar's value relative to the yen.

If the Fed Wants to Depreciate the Dollar Against the Yen