When the Value of the Canadian Dollar Drops

question 225

Multiple Choice

When the value of the Canadian dollar drops

• A) both our imports and our exports become more expensive.
• B) our imports become cheaper and our exports become more expensive.
• C) our imports become more expensive and our exports become cheaper.
• D) both our imports and our exports become cheaper.
• E) there is no change in the price of our imports and our exports.

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Definitions:

Profitability

The ability of a company to generate earnings as compared to its expenses and other relevant costs.

Order of Liquidity

The arrangement of assets on a balance sheet in descending order of how quickly they can be converted into cash.

Long-Term Investments

Long-Term Investments are assets that a company intends to hold for more than one fiscal year, often including stocks, bonds, or real estate.