When the market value of the Canadian dollar falls relative to other currencies around the world, we say that
A)the Canadian dollar has appreciated.
B)the Canadian dollar has depreciated.
C)the demand for Canadian dollars has decreased.
D)the supply of Canadian dollars has decreased.
E)the real exchange rate fell.

Question

Quizplus · Accepted Answer

When the market value of the Canadian dollar falls relative to other currencies, we say that the Canadian dollar has depreciated. This means it can buy less of other currencies than before.

When the Market Value of the Canadian Dollar Falls Relative