When the Value of the Canadian Dollar Increases by 20

question 44

Multiple Choice

When the value of the Canadian dollar increases by 20 percent against the major currencies in the previous quarter and drops by around 30 percent in the current quarter, it is referred to as:

• A)deflation.
• B)foreign currency fluctuation.
• C)inflation.
• D)recession.
• E)shoe leather cost.

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Definitions:

Increased

A situation or condition where there is a rise or growth in quantity, size, number, or some other measure.

Decreased

A reduction or decline in value, amount, quality, or intensity.

Capacity Utilization Rate

A measure of how fully an industry or economy is using its total productive capacity.

Interest Rate

The portion of the loan that applies interest costs to the borrower, generally formulated as an annual percentage of the still outstanding loan amount.