A Project Was Tendered in 2009 for US$3

question 152

Multiple Choice

A project was tendered in 2009 for US$3.5 million, when the exchange rate was US$1.0315 per $C. It started building in 2010 and the money was borrowed from the Canadian bank when the exchange rate fell to US$0.971 per $C. What is the increase in the amount borrowed?

• A) $104 531
• B) $106 883
• C) $110 250
• D) $5719
• E) $211 750

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Definitions:

Transfer Payments

Payments made by the government to individuals, without the government receiving any goods or services in return, such as welfare payments and social security benefits.

Exhaustive

Thorough and comprehensive in approach or scope.

Deficit Spending

The practice of a government spending more money than it receives in revenue, typically funded through borrowing.

Borrowed Funds

Money obtained from external sources, such as banks or financial institutions, to be repaid over time with interest.