The value of the Canadian dollar
A) is always valued at the same exchange rate.
B) typically trades above the U.S. dollar.
C) typically values at par with the U.S. dollar.
D) reflects the overall supply and demand for Canadian dollars both at home and abroad.
E) none of these.

Question

Quizplus · Accepted Answer

The value of the Canadian dollar reflects the overall supply and demand for Canadian dollars both at home and abroad. It can fluctuate in response to economic and political factors, such as changes in interest rates, inflation, and international trade. Therefore, option D is the most accurate statement. Options A, B, and C are incorrect as they do not reflect the dynamic nature of exchange rates.

The Value of the Canadian Dollar