Which of the following factors influence the demand for Canadian dollars?
A)The exchange rate and the world demand for Canadian exports.
B)Interest rates in Canada and other countries, and the expected future exchange rate.
C)The world demand for Canadian exports and Canadian demand for imports.
D)Both A and B are correct.
E)Both B and C are correct.

Question

Quizplus · Accepted Answer

The demand for Canadian dollars is influenced by both the exchange rate and the world demand for Canadian exports (option A), as well as by interest rates in Canada and other countries, and the expected future exchange rate (option B). Therefore, choices A and B are correct, making option D the best answer. Option C is incorrect, as it only includes the demand for Canadian exports but does not account for interest rates or expected future exchange rates. Option E is also incorrect, as it includes Canadian demand for imports, which is not a factor that affects the demand for Canadian dollars.

Which of the Following Factors Influence the Demand for Canadian