If the Bank of Canada Sets a Target Exchange Rate

question 5

Multiple Choice

If the Bank of Canada sets a target exchange rate that is higher than the current exchange rate,then

• A)the Bank must sell dollars.
• B)the Bank must buy dollars.
• C)the Bank can do nothing in the short run.
• D)will print more dollars for foreign distribution.
• E)None of the above.

---

Definitions:

Advertised Price

The price of a product or service that is publicly promoted or communicated to potential customers.

House Brand

A product that is marketed and sold by a retailer under its own brand name, as opposed to a brand name owned by a supplier.

UPC Bar Code

Universal Product Code; a barcode symbology used for tracking trade items in stores primarily in the United States.

Consumer Protection Act

A set of laws designed to protect the rights and interests of consumers by regulating fair trade, competition, and accurate information in the marketplace.