If the Dollar Appreciates Relative to the Swiss Franc

question 4

Multiple Choice

If the dollar appreciates relative to the Swiss franc,

• A) Canadian exports to Switzerland become more expensive.
• B) Canadian exports to Switzerland become less expensive.
• C) Swiss imports to Canada become more expensive.
• D) the value of Swiss imports to Canada does not change.

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Definitions:

Mortgage-Backed Securities

Financial instruments that are secured by mortgages, with payments derived from the underlying loans.

Economic Efficiency

The optimal allocation of resources to maximize the production of goods and services without wasting any resources.

Competitive Forces

Pressures or influences that affect an organization's ability to compete in a market, including rivalry among existing competitors, the threat of new entrants, and bargaining power of customers and suppliers.

Market Allocation

A method of distributing goods and services among buyers and sellers wherein prices are determined by supply and demand forces in the market.