When there is excess demand for Canadian dollars in the foreign exchange market,

Name: When there is excess demand for Canadian dollars in the foreign exchange market,
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Excess demand for Canadian dollars means there is a higher demand for Canadian dollars than the supply available in the market. This leads to competition among buyers to acquire Canadian dollars, which in turn raises the exchange rate as they are willing to pay more for each Canadian dollar. Therefore, option B is the correct choice.

When There Is Excess Demand for Canadian Dollars in the Foreign