Multiple Choice
Which of the following statements is false?
A) If Canadians want to buy foreign bonds, they need to buy foreign currency.
B) If foreigners want to buy Canadian bonds, they need to buy Canadian dollars.
C) The foreign exchange rate (er) is the price of one unit of foreign currency expressed in Canadian dollars.
D) If the exchange rate of one US dollar is $1.25 in Canada, it means the value of one Canadian dollar is US 0.75.
Correct Answer:
Verified
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