Compared to a Situation in Which There Is No Change

question 221

Multiple Choice

Compared to a situation in which there is no change in the value of the Canadian dollar relative to the peso, in which of the following situations would you be worse off?

• A)You borrow 10,000 pesos, you earn income in Canadian dollars, the Canadian dollar appreciates against the peso, and you must pay back the loan in pesos.
• B)You borrow $10,000, you earn income in pesos, the Canadian dollar depreciates against the peso, and you must pay back the loan in Canadian dollars.
• C)You borrow $10,000, you earn income in pesos, the Canadian dollar appreciates against the peso, and you must pay back the loan in Canadian dollars.
• D)You borrow 10,000 pesos, you earn income in pesos, the Canadian dollar depreciates against the peso, and you must pay back the loan in pesos.
• E)You borrow 10,000 pesos, you earn income in dollars, the Canadian dollar depreciates against the pesos, and you must pay back the loan in dollars.

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Definitions:

Company Performance

An evaluation of a company's financial and operational effectiveness, typically measured by metrics such as revenue, profitability, and market share.

Nonfinancial Performance Output

Nonfinancial performance output assesses a company's operational efficiency, customer satisfaction, and employee engagement, which are not directly measured in monetary terms.

Input Measures

Quantitative indicators used to assess the amount of resources consumed during the production of goods or services.

Improvement

Enhancements made to an asset or property that increase its value or extend its useful life, rather than repairs which maintain its current condition.