The Bank of Canada

question 59

Multiple Choice

The Bank of Canada

• A)alternates between a flexible, fixed, and crawling peg exchange rate policy depending on economic conditions.
• B)has no influence on the exchange rate.
• C)sells Canadian dollars to the United States in an attempt to depreciate the Canadian dollar and increase Canadian exports to the United States.
• D)follows a flexible exchange rate policy, although the Bank's actions can impact the exchange rate.
• E)buys Canadian dollars from the United States in an attempt to depreciate the Canadian dollar and increase Canadian exports to the United States.

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Definitions:

Budgeted Cash Disbursements

Budgeted cash disbursements are forecasted cash payments during a specific period, part of cash flow planning.

Bad Debts

Accounts receivable that are considered uncollectible and are written off as a loss.

General Operating Expenses

These are the day-to-day expenses necessary for the management and administration of a business, such as rent, utilities, and payroll.

Collections

The process of pursuing payment on debts owed by individuals or businesses, typically involving accounts receivable.