When the Canadian Teachers Pension Plan buys stock in the U.S.-based Apple Corporation, the effect on the foreign exchange market is

Question

Quizplus · Accepted Answer

When the Canadian Teachers Pension Plan buys stock in the U.S.-based Apple Corporation, they must convert their Canadian dollars into U.S. dollars to make the purchase. This increases the supply of Canadian dollars in the foreign exchange market, as Canadian dollars are sold off in exchange for U.S. dollars.

When the Canadian Teachers Pension Plan Buys Stock in the U.S.-Based