Given Floating Exchange Rates, a Simultaneous Decrease in the Canadian

question 46

Multiple Choice

Given floating exchange rates, a simultaneous decrease in the Canadian demand for British products and increase in the British desire to invest in Canadian government securities would cause a(n)

• A) appreciation of the pound against the dollar.
• B) depreciation of the pound against the dollar.
• C) unchanged pound/dollar exchange rate.
• D) appreciation of both the pound and dollar.

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Definitions:

ATP

A molecule known as adenosine triphosphate, which serves as a carrier of energy inside cells for metabolic processes.

Galactose

A simple sugar (monosaccharide) that, together with glucose, forms the disaccharide lactose; important in energy metabolism and found in dairy products.

Glucose

An elementary sugar critical for energy in living organisms and a key element of many carbohydrate compounds.

Principle Sugar

The primary type of sugar that is prevalent or most important within a particular context, such as glucose in human blood.