If the Japanese central bank sells yen and buys U.S.dollars,the U.S.dollar will appreciate.

Question

Quizplus · Accepted Answer

When a central bank sells its currency and buys another currency, the demand for the currency being sold decreases, while the demand for the currency being bought increases. This leads to a decrease in the value of the currency being sold and an increase in the value of the currency being bought. So, if the Japanese central bank sells yen and buys U.S. dollars, the U.S. dollar will appreciate.

If the Japanese Central Bank Sells Yen and Buys U