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 that she needs to learn how the foreign exchange market works before she can successfully sell her products abroad.
-If Sally sees a quote of ¥117.87/$,she should know that ________.

Question

Quizplus · Accepted Answer

The quote of ¥117.87/$ means that the yen is being quoted as the price of one U.S. dollar. Therefore, this is a direct quote on the yen, where the yen is the base currency. Option A is incorrect because the yen is the base currency, not the quote currency. Option B is incorrect because this is a direct quote on the yen, not on the dollar. Option D is incorrect because the quote is in yen, not dollars.