In a world with only two countries, if Japan reduces the value of the yen by 20% and West Germany lowers the mark's value by 15%, what is the outcome for the yen relative to the mark?

Exchange-Rate Adjustments And The Balance of MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

Exchange-Rate Adjustments And The Balance of

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Subject
Exchange-Rate Adjustments And The Balance ofeconomics-mcqs › exchange-rate-adjustments-and-the-balance-of
Published
1 Jun 2019
Last updated
28 May 2026

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Explanation

Since Japan devalues the yen by a larger percentage (20%) than West Germany devalues the mark (15%), the yen loses more value relative to the mark. Therefore, the yen depreciates against the mark.

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