The Following Information Pertains to Questions

question 54

Multiple Choice

The following information pertains to questions
XYZ Corp has a calendar year end.On January 1,2010,the company borrowed $5,000,000 U.S.dollars from an American Bank.The loan is to be repaid on December 31,2013 and requires interest at 5% to be paid every December 31.The loan and applicable interest are both to be repaid in U.S.dollars.XYZ does not hedge to minimize its foreign exchange risk.
The following exchange rates were in effect throughout the term of the loan: The average rates in effect for 2010 and 2011 were as follows:
-By what amount (in Canadian Dollars) would ABC have to adjust its Loan Liability on December 31,2010 as a result of the year's foreign exchange rate fluctuations?

• A)Nil.
• B)A $5,000 increase.
• C)A $2,500 decrease.
• D)A $3,500 decrease.

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Definitions:

Chemical Synapse

A junction between two nerve cells, where neurotransmitters are used to relay signals.

Presynaptic Terminal

The end part of a nerve fiber that releases neurotransmitters to transmit nerve signals to another neuron across a synapse.

Postsynaptic Membrane

The part of the nerve cell membrane that is on the receiving end of a synapse, responding to neurotransmitters released by the presynaptic neuron.

Synaptic Cleft

The narrow gap between the terminal end of a neuron and the neighboring neuron or muscle cell, across which neurotransmitters are released to transmit signals.