Exhibit 18-3 -Imagine That There Are Only Two Nations in the World,Canada

question 86

Multiple Choice

Exhibit 18-3

-Imagine that there are only two nations in the world,Canada and Switzerland.Which of the following is true of the suppliers and demanders in this market,as represented in Exhibit 18-3?

• A) The demanders want Canadian dollars and are offering Swiss francs.
• B) The suppliers want Canadian dollars and are offering Swiss francs.
• C) Both the suppliers and the demanders are offering Canadian dollars.
• D) Both the suppliers and the demanders are offering Swiss francs.
• E) Francs are being exchanged by unknown suppliers and demanders in a money market in Switzerland;anyone could be trading.

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Definitions:

Advance Written-notice

A notification given in writing ahead of time, often a requirement in legal and contractual situations.

Incontestability Clause

A provision in a life insurance policy that prevents the insurer from disputing the policy's validity after it has been in force for a certain period, typically two years.

Life Insurance Policy

A contract with an insurance company that provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured's death.

Understates Age

The act of deliberately reporting one's age as younger than it truly is, often for personal gain or to meet specific requirements.