Between 2009 and 2011, the Canadian Dollar

question 31

Multiple Choice

Between 2009 and 2011, the Canadian dollar

• A)depreciated against the U.S. dollar.
• B)appreciated against the U.S. dollar.
• C)remained constant against the U.S. dollar.
• D)was not able to vary against the U.S. dollar, because the exchange rate was fixed against the Japanese yen.
• E)bought the same number of U.S. dollars as the euro.

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Definitions:

Compounded Annually

This refers to the process of calculating interest on an investment or loan on a yearly basis, where interest from one year is added to the principal for calculation of interest in the next year.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Compounded Quarterly

The process of calculating interest on both the initial principal and the accumulated interest of previous periods on a quarterly basis.

Compound Interest

The interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.