If a panic causes Indian depositors to withdraw their money from Japanese banks,it would cause the Japanese Yen to ___________,since the supply of Yen has increased
A)Appreciate
B)Depreciate
C)Not change in value
D)None of the above

Question

​If a panic causes Indian depositors to withdraw their money from Japanese banks,it would cause the Japanese Yen to ___________,since the supply of Yen has increased
A)​Appreciate
B)Depreciate
C)Not change in value
D)​None of the above

Quizplus · Accepted Answer

When there is an increase in the supply of Yen due to Indian depositors withdrawing their money from Japanese banks, there will be excess supply of Yen in the market. This would lead to a depreciation in the value of Yen as the demand for Yen would decrease relative to its supply.

​If a Panic Causes Indian Depositors to Withdraw Their Money

If a Panic Causes Indian Depositors to Withdraw Their Money