If you exchanged $1,000 for 90,000 yen at your local bank in preparation for an upcoming trip to Tokyo, and notice after your arrival that the current exchange rate is 100 yen per dollar, how will the value of the yen you brought to Tokyo change relative to the dollar?
a) The value of the yen fell in value relative to the dollar.
b) The value of the yen rose in value relative to the dollar.
c) The value of the yen stayed the same relative to the dollar.
d) There is not enough information to answer this question.
Ans: a) The value of the yen fell in value relative to the dollar.
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