You are given the following exchange rates for the Canadian dollar versus the U.S.dollar:
Which one of the following statements is correct given this information?
A) Last week, it took Can$0.8078 to purchase US$1.
B) This week you can exchange one Canadian dollar for $1.2376 American.
C) It is cheaper for an American to travel in Canada this week as compared to last week.
D) The Canadian dollar depreciated from last week to this week.
E) You would have made a profit if you invested U.S. $100 in Canadian dollars last week and then converted your money back to U.S. dollars this week. Ignore any interest earnings.
Correct Answer:
Verified
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