A depreciation of the Canadian dollar implies

Question

Quizplus · Accepted Answer

When the Canadian dollar depreciates, it means that its external value has fallen relative to other currencies. As a result, more Canadian dollars will be required to purchase foreign currency. Therefore, option B is correct. Options A and C are incorrect because they suggest a rise in the external value of the dollar, which is not the case with depreciation. Option D is also incorrect because fewer dollars are required to purchase foreign currency with a fall in the external value of the dollar. Option E is not related to the question and is therefore incorrect.

A Depreciation of the Canadian Dollar Implies