Which of the following is a correct statement?
a. If a foreign currency appreciates, that country's goods and services become relatively more expensive for U.S. buyers.
b. If the dollar is initially worth 120 yen and then the exchange rate changes so that the dollar is now worth 115 yen, the value of the yen has depreciated.
c. If the U.S. has inflation of 3% and Europe has inflation of 5%, the value of the euro should increase, ceteris paribus.
d. A U.S. bank has made £12 million worth of loans and £10 million worth of deposits in Britain. The bank would benefit from a drop in the value of the pound against the dollar.
e. A country with lower interest rates than another country is likely to see its currency depreciate if parity holds.