If the Exchange Rate Between the Canadian Dollar (C$)and the U.S.dollar

question 2

Multiple Choice

If the exchange rate between the Canadian dollar (C$) and the U.S.dollar ($) changes from 1C$ = $1.30 to 1C$ = $1.05 we can say that:

• A)the U.S.dollar has depreciated with respect to all the currencies across the world.
• B)the Canadian dollar has appreciated with respect to the U.S.dollar.
• C)the U.S.dollar has appreciated with respect to the Canadian dollar.
• D)the Canadian dollar has depreciated with respect to all the currencies across the world.
• E)the Canadian dollar has appreciated with respect to all the currencies across the world.

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Definitions:

Internal Rate

Often referred to as the Internal Rate of Return (IRR), it is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero.