If a Canadian Company Builds and Operates a Mine in Indonesia,in

question 12

Multiple Choice

If a Canadian company builds and operates a mine in Indonesia,in the foreign-exchange market there will be a(n)

• A)fall in the demand for dollars in the foreign-exchange market.
• B)increase in the demand for dollars in the foreign-exchange market.
• C)fall in the supply of dollars to the foreign-exchange market.
• D)increase in the supply of dollars to the foreign-exchange market.
• E)decrease in the debits on Canada's capital account.

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Definitions:

Corporate Bonds

Debt securities issued by corporations to raise capital, with terms specifying the interest rate, maturity date, and other conditions.

Taxation

The process by which governments finance their expenditure by imposing charges on citizens and corporate entities.

Treasury Bond

A long-term, interest-bearing security issued by the U.S. Treasury with a maturity period typically longer than ten years.

Ask

The lowest price a seller is willing to accept for a security.