Which of the following statement best describes the movement of the Canadian dollar against the US dollar in the period 2002-2008?
A) The Canadian dollar appreciated because demand for natural resources such as oil increased.
B) The Canadian dollar depreciated because demand for commodity decreased.
C) The Canadian dollar appreciated because the US exports to Canada increased.
D) The Canadian dollar depreciated because the interest rate in Canada was lower than US.

Question

Quizplus · Accepted Answer

The appreciation of the Canadian dollar from 2002 to 2008 can be mainly attributed to the increase in demand for natural resources like oil, which drove up commodity prices and helped boost Canada's economy. This led to an increase in demand for the Canadian dollar, causing it to appreciate against the US dollar.

Which of the Following Statement Best Describes the Movement of the Canadian