An appreciation of the Canadian dollar implies

Question

Quizplus · Accepted Answer

An appreciation of the Canadian dollar means that the external value of the dollar has risen, which implies that fewer dollars are required to purchase foreign currency. Option A and B imply a fall in the external value of the dollar, which is opposite to an appreciation. Option D also implies a rise in the external value of the dollar, but it suggests that more dollars are required to purchase foreign currency, which is not correct. Option E is irrelevant, as it talks about the official reserves of the Bank of Canada, which are not directly related to the exchange rate.

An Appreciation of the Canadian Dollar Implies