If a Canadian NHL team receives its revenues in Canadian Dollars, but must pay its players in U.S. Dollars, a weakening of the Canadian Dollar relative to the U.S. dollar will cause.

Question

Quizplus · Accepted Answer

A weakening of the Canadian Dollar relative to the U.S. dollar means that it takes more Canadian Dollars to pay the same amount in U.S. Dollars. Therefore, the team's costs to pay its players in U.S. Dollars will increase, leading to a decrease in the team's profits.

If a Canadian NHL Team Receives Its Revenues in Canadian