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The Supply of Canadian Dollars to the Foreign- Exchange Market

Question 81

Multiple Choice

The supply of Canadian dollars to the foreign- exchange market, which is also the demand for foreign currency, is derived from


A) imports to Canada + capital inflows to Canada.
B) imports to Canada + capital outflows from Canada.
C) exports from Canada + capital inflows to Canada.
D) the Canadian government's holdings of official reserves.
E) exports from Canada + capital outflows from Canada.

Correct Answer:

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