For each of the following, is it part of demand for yen or supply of yen in the foreign exchange market? a. A Japanese firm sells its U. S. government securities to obtain funds to buy real estate in Japan. b. A U. S. import company pays for glassware purchased from a small Japanese producer. c. A U. S. farm cooperative receives payment from a Japanese importer of U. S. oranges. d. A U. S. pension fund uses some incoming contributions to buy equity shares of several Japanese companies through the Tokyo stock exchange.

Question

Ezra Cole

Business

6 August, 08:57

For each of the following, is it part of demand for yen or supply of yen in the foreign exchange market? a. A Japanese firm sells its U. S. government securities to obtain funds to buy real estate in Japan. b. A U. S. import company pays for glassware purchased from a small Japanese producer. c. A U. S. farm cooperative receives payment from a Japanese importer of U. S. oranges. d. A U. S. pension fund uses some incoming contributions to buy equity shares of several Japanese companies through the Tokyo stock exchange.

+3

Answers (1)

Know the Answer?

Huynh · Answer 1

a. A Japanese firm sells its U. S. government securities to obtain funds to buy real estate in Japan.

This contributes to the demand for yen

b. A U. S. import company pays for glassware purchased from a small Japanese producer.

This contributes to the demand for yen

c. A U. S. farm cooperative receives payment from a Japanese importer of U. S. oranges.

This contributes to the supply of yen for foreign exchange

d. A U. S. pension fund uses some incoming contributions to buy equity shares of several Japanese companies through the Tokyo stock exchange.

This contributes to the demand for yen