If the supply of Canadian dollars in Britain increases,what does NOT occur?

Question

Quizplus · Accepted Answer

When the supply of Canadian dollars in Britain increases, it means there are more Canadian dollars available to buy goods and services in Britain. This would lead to an increase in the demand for pounds, causing the pound to appreciate against the Canadian dollar. As such, option A and C are incorrect. Option B is the opposite of what would happen as the pound would strengthen, not weaken against the Canadian dollar. Option D is incorrect as the question mentions that the supply of Canadian dollars is increasing, so it doesn't make sense for the Canadian dollar to appreciate.

If the Supply of Canadian Dollars in Britain Increases,what Does