Currency Traders Expect the Value of the Canadian Dollar to Rise.What

question 232

Multiple Choice

Currency traders expect the value of the Canadian dollar to rise.What effect will this have on the demand for Canadian dollars and the supply of Canadian dollars in the foreign exchange market?

• A)Demand for Canadian dollars will increase, supply of Canadian dollars will decrease, and the Canadian dollar will appreciate.
• B)Demand for Canadian dollars will increase, supply of Canadian dollars will increase, and the Canadian dollar may appreciate or depreciate.
• C)Demand for Canadian dollars will decrease, supply of Canadian dollars will increase, and the Canadian dollar will depreciate.
• D)Demand for Canadian dollars will decrease, supply of Canadian dollars will decrease, and the Canadian dollar may appreciate or depreciate.
• E)Demand for Canadian dollars will decrease, the supply of Canadian dollars will decrease, and the Canadian dollar will appreciate.

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