If the exchange rates, after fees, in Tokyo are ¥1,000 = €6 = $9 and the exchange rates in Paris are €1 = $1.5 = ¥171, which of the following is most likely to occur?
A) a surge in conversion of dollars to yen in Tokyo
B) a surge in conversion of euros to yen in Tokyo
C) a surge in conversion of euros to dollars in Paris
D) a surge in conversion of euros to yen in Paris

Question

Quizplus · Accepted Answer

Since the exchange rate in Tokyo offers more yen for every euro or dollar compared to Paris, it is more likely that people in Paris would want to convert their euros to yen in order to get more value for their money. Therefore, there would be a surge in conversion of euros to yen in Paris.

If the Exchange Rates, After Fees, in Tokyo Are ¥1,000