In the Foreign Exchange Market,a Change in Which of the Following

question 80

Multiple Choice

In the foreign exchange market,a change in which of the following will result in a movement along the demand curve for Canadian dollars?

• A)the U.S.interest rate
• B)the Canadian interest rate
• C)the exchange rate
• D)the expected future exchange rate
• E)both A and B

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Definitions:

Financial Crisis

A significant disruption in the flow of funds, leading to financial instability in markets and institutions characterized by a rapid devaluation of assets and failure of businesses.

International Monetary Fund

A global organization that provides financial assistance and advice to member countries.

Multilateral Organization

An international institution formed by three or more nations to work on issues that are relevant to each of them.

Non-profit Group

Organizations established for purposes other than making a profit, often focused on serving a social, educational, or charitable aim.