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__________
A)Appreciate;Decrease
B)Depreciate;Decrease
C)Appreciate,Increase
D)Depreciate;Increase

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__________
A)​Appreciate;Decrease
B)Depreciate;Decrease
C)Appreciate,Increase
D)​Depreciate;Increase

Quizplus · Accepted Answer

When depositors withdraw their money, banks convert the deposits from Yen to the depositors' currency, increasing the supply of Yen in the foreign exchange market, leading to depreciation.

​If a Panic Causes Indian Depositors to Withdraw Their Money

If a Panic Causes Indian Depositors to Withdraw Their Money