FIGURE 34-2 -Refer to Figure 34-2. If the Exchange Rate Is E1

question 39

Multiple Choice

FIGURE 34-2
-Refer to Figure 34-2. If the exchange rate is e1, there is

• A) an excess demand for foreign exchange.
• B) pressure for the Canadian dollar to appreciate.
• C) pressure for the exchange rate to rise.
• D) an excess supply of Canadian dollars.
• E) a surplus of Canadian dollars.

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Definitions:

Assignment

The passage of control over assets, obligations, or rights from one person to another.

Donee Beneficiary

A third party who benefits from a contract made between two other parties, particularly when the contract's purpose is to give a gift to the third party.

Cause of Action

A collection of sufficient facts that validates the entitlement to initiate legal action for the purpose of acquiring money, property, or enforcing a right against someone else.

Breaching Party

the party in a contract who fails to fulfill their contractual obligations, thereby violating the agreement.