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.

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Definitions:

Transform Faults

Boundaries between tectonic plates where the motion is predominantly horizontal, leading to earthquakes but not creating volcanoes.

Gulf of Mexico

A large ocean basin near the southeastern coast of North America, bounded by the United States, Mexico, and Cuba, known for its rich biodiversity and significant oil reserves.

Narrow Ocean

A relatively thin and elongated body of oceanic water situated between more substantial land masses.

Narrow Ocean

Refers specifically to the relatively thinner and smaller expanses of ocean, often found between landmasses.