If a panic causes Indian depositors to withdraw their money from Japanese banks,it would cause the Japanese Yen to depreciate,since the supply of Yen has________
A)Not changed
B)Decreased
C)Increased
D)None of the above

Question

​If a panic causes Indian depositors to withdraw their money from Japanese banks,it would cause the Japanese Yen to depreciate,since the supply of Yen has________
A)​Not changed
B)Decreased
C)Increased
D)​None of the above

Quizplus · Accepted Answer

When depositors withdraw their money, banks convert the deposits from Yen to the depositors' currency, increasing the supply of Yen in the foreign exchange market, leading to depreciation.

​If a Panic Causes Indian Depositors to Withdraw Their Money

If a Panic Causes Indian Depositors to Withdraw Their Money