Which of the following does NOT explain why residents of other countries desire to acquire Canadian dollars?
A) because foreigners need Canadian dollars to purchase Canadian goods and services
B) because Canadian dollars can be used as a safe way of storing value when the foreigner's own currency is unstable
C) because Canadian dollars can be used for cash gifts from foreigners to Canadian friends and relatives
D) because Canadian dollars are the only currency accepted in international transactions
Correct Answer:
Verified
Q95: Exhibit 16-3 Q96: What is an exchange rate? Q97: Suppose the Canadian demand for British pounds Q98: Under what circumstances will the Canadian dollar Q99: Suppose that Canadian incomes rise relative to Q101: Suppose the British pound declines in value Q102: How are exchange rates determined? Q103: What will be the effect of a Q104: Exhibit 16-5 Q105: Suppose a basket of goods that costs
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A) the price
A) They fluctuate
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