If Interest Rates in Canada Fall

question 155

Multiple Choice

If interest rates in Canada fall,

• A)the value of the Canadian dollar will fall as foreign investors decrease their holdings of Canadian investments.
• B)the value of the Canadian dollar will rise as foreign investors increase their holdings of Canadian investments.
• C)the value of the Canadian dollar will fall as foreign investors increase their holdings of Canadian investments.
• D)the value of the Canadian dollar will rise as foreign investors decrease their holdings of Canadian investments.
• E)the value of the Canadian dollar will fall as domestic investors purchase fewer foreign bonds.

---

Definitions:

Synaptic Vesicles

Small sac-like structures in neurons that store neurotransmitters, which are chemicals responsible for transmitting messages across synapses.

Thyroid

A gland located in the neck region that produces hormones regulating growth, development, metabolism, and body temperature.

Adrenal Glands

Endocrine glands located on top of each kidney that secrete more than 30 different hormones to deal with stress, regulate salt intake, and provide a secondary source of sex hormones affecting the sexual changes that occur during adolescence.

Pancreas

An organ in the digestive and endocrine system that produces enzymes for digestion and hormones such as insulin for blood sugar regulation.