When Would the Exchange Rate Fall the Most

question 1

Multiple Choice

When would the exchange rate fall the most?

• A)The supply of and demand for dollars both decrease.
• B)The supply of and demand for dollars both increase.
• C)The supply of dollars decreases, and the demand for dollars increases.
• D)The supply of dollars increases, and the demand for dollars decreases.
• E)The Bank of Canada intervenes.

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Definitions:

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

TR

Refers to Total Revenue, which is the total income a company earns from the sale of its goods and services.

Positive Profit

Positive Profit occurs when the total revenue of a business exceeds its total costs.