When the Value of the Canadian Dollar Increases, Which of the Following

question 34

Multiple Choice

When the value of the Canadian dollar increases, which of the following is correct?

• A) employment in all sectors of the economy will be reduced
• B) real wages will be decreased
• C) the price elasticity of demand for all goods and services will be reduced
• D) union concerns about job security will be reduced
• E) real value will increase

---

Definitions:

Accounts Receivable Turnover

A financial ratio indicating how many times a company's accounts receivable are collected during a specific period, typically a year.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Short-Term Debt-Paying

Refers to a company's ability to meet its short-term financial liabilities and obligations.

Acid-Test

A stringent financial ratio that measures the ability of a company to pay off its current liabilities with its most liquid assets (cash, marketable securities, and accounts receivable).