When the Market Value of the Canadian Dollar Falls Relative

question 130

Multiple Choice

When the market value of the Canadian dollar falls relative to other currencies around the world, we say that

• A)the Canadian dollar has appreciated.
• B)the Canadian dollar has depreciated.
• C)the demand for Canadian dollars has decreased.
• D)the supply of Canadian dollars has decreased.
• E)the real exchange rate fell.

---

Definitions:

Cash Management

The process of collecting, managing, and investing a company's cash in a way that optimizes its liquidity and profitability.

Lock-box System

A collection and processing service provided by banks to speed up the receipt and deposit of checks from customers.

Disbursement Float

The time delay between when a check is issued and when it is deducted from the payer's bank account.

Issuance

The process of offering new or existing securities for sale to investors by a corporation or government entity.