If Canada exports coal to Japan,what is the effect in the exchange market?

Question

Quizplus · Accepted Answer

When Canada exports coal to Japan, it earns Japanese yen. This increases the demand for Canadian dollars in the foreign exchange market as Japanese importers of Canadian coal need to exchange their yen for Canadian dollars to pay for the exports. Therefore, the demand for Canadian dollars increases, leading to an increase in the exchange rate. The other options can be eliminated as they do not accurately reflect the effect on the exchange market.

If Canada Exports Coal to Japan,what Is the Effect in the Exchange