If the Japanese Yen Is Expected to Appreciate Against the U.S

Multiple Choice

If the Japanese yen is expected to appreciate against the U.S. dollar and interest rates in the U.S. and Japan are similar, banks may try speculating on this anticipated exchange rate movement by borrowing ____ and investing in ____.

A) yen; dollars
B) yen; yen
C) dollars; yen
D) dollars; dollars