An Index That Shows the Nominal Exchange Rate for the Canadian

question 29

Multiple Choice

An index that shows the nominal exchange rate for the Canadian dollar against the currencies of Canada's trading partners is called

• A)real exchange rate.
• B)purchasing power parity.
• C)effective exchange rate.
• D)nominal exchange rate.

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Definitions:

Taxable Money Market Funds

Investment funds that invest in short-term debt securities and are subject to federal and sometimes state income taxes.

Tax-exempt

Income or transactions that are free from tax at the federal, state, or local level.

No-load Mutual Fund

A mutual fund that does not charge any type of sales load or commission, allowing investors to put more of their money directly into investments.

Expense Ratio

The annual fee that mutual funds, index funds, and ETFs charge their shareholders, expressed as a percentage of the fund's average net assets.