For each of the following, is it part of the demand for yen or supply of yen in

Question

For each of the following, is it part of the demand for yen or supply of yen in the foreign exchange market?

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

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

c. A US farm cooperative receives payment from a Japanese importer of US oranges?

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

Explanation / Answer

a) Supply of Yen

b) Demand of Yen

c) Supply of Yen

d) Demand of Yen

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