When There Is a Shortage of Canadian Dollars in the Foreign

question 93

Multiple Choice

When there is a shortage of Canadian dollars in the foreign exchange market,

• A) competition among sellers raises the exchange rate.
• B) competition among buyers raises the exchange rate.
• C) competition among sellers lowers the exchange rate.
• D) competition among buyers lowers the exchange rate.
• E) cooperation between buyers and sellers lowers the exchange rate.

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Definitions:

Direct

involves straight or firsthand transmission or provision of goods, services, or communication without the involvement of an intermediary.

Materials Traceable

Direct materials that can be directly identified and assigned to the manufacturing process of a specific product.

Specific Products

Goods that are distinctly defined or particularized among a broader range of products.

Prime Cost

Prime cost refers to the combined direct costs of raw materials and labor that are directly involved in the production of goods.