An Increase in the Rate of Interest in Canada Will

question 55

Multiple Choice

An increase in the rate of interest in Canada will most likely

• A)reduce the attractiveness of investment in Canada.
• B)lead to a decrease in the value of the Canadian dollar.
• C)lead to an inflow of funds to Canada and an appreciation of the dollar.
• D)provide a stimulus to our export industries.

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Definitions:

Issued At 98

A term indicating that a bond or other security was issued at a price below its par or face value, in this case, at 98% of the face value.

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated by subtracting liabilities from the total assets.

Bond Retirement

The process by which an issuer fulfills its obligational repayment of the principal amount of a bond before its maturity date.

Interest Expense

The cost incurred by an entity for borrowed funds, referring to the interest paid on debt.