When a student from Toronto pays her tuition to a American university, the supply of Canadian dollars decreases in the foreign exchange market.

Question

Quizplus · Accepted Answer

When a student from Toronto pays her tuition to an American university, she needs to exchange Canadian dollars for US dollars, increasing the supply of Canadian dollars in the foreign exchange market as she sells Canadian dollars to buy US dollars.

When a Student from Toronto Pays Her Tuition to a American