In 1989 Canada and the United States Agreed to Implement

question 239

Multiple Choice

In 1989 Canada and the United States agreed to implement a (an) ____ over a ten year period.

• A) Customs union
• B) Common market
• C) Free trade area
• D) Economic union

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Definitions:

Foreign Exchange Loss

A decrease in domestic currency value due to holding foreign currency or financial instruments as they depreciate against the home currency.

Forward Contract

A financial instrument agreement to buy or sell an asset at a predetermined future date and price.

Spot Rate

The present going rate for a specific currency to be purchased or exchanged, available for prompt delivery.

Hedge

A financial strategy used to reduce the risk of adverse price movements in an asset.