Suppose the Bank of Japan sells $5 billion of U.S. Treasury securities. Use a graph of the

Question:

Suppose the Bank of Japan sells $5 billion of U.S. Treasury securities. Use a graph of the demand and supply of yen in exchange for dollars to show the effect on the exchange rate between the yen and the dollar. Briefly explain what is happening in your graph.

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...