Scenario: Sally Goes to Japan

Scenario: Sally goes to Japan
Sally Johnson has identified a market for her company's products in Japan. She is excited about expanding her company, but knows she needs to learn how the foreign exchange market works before she can successfully sell her products abroad.
-If Sally knows that on March 1 the exchange rate between the European Union euro (€) and the U.S. dollar was €5/$ and that by April 1 the exchange was €4/$ she knows that ________.

A) the value of the dollar has fallen 20 percent
B) the value of the euro has risen 20 percent
C) she is looking at an indirect quote on the euro
D) she is looking at a direct quote on the dollar