inflation rate becomes high relative to Canadian inflation. Other things being equal, how should this affect the (a) U.S. demand for Canadian dollars, (b) supply of Canadian dollars for sale, and (c) equilibrium value of the Canadian dollar? ANSWER: If U.S inflation rate becomes high relative to Canadian dollars then the demand for Canadian dollars should increase, supply of Canadian dollars for sale should decrease, and the Canadian dollar’s value should increase. Q3. Assume U.S. interest
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fluctuations between the U.S. and Canadian dollar. Historically, there have been sharp increases and decreases of the value of one currency to the other. In the early 1970s, the Canadian dollar was valued higher than the US dollar. In 2002, the Canadian dollar valued at an all-time low at US$0.6179. In 2007, Canada’s economic welfare increased as that of the US decreased. The two currencies were trading at parity for the first time since 1976. RBC forecasts that the Canadian dollar will appreciate to $1.08
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| | List of Defects Identify defects by checklist number and observed error, but do not include any corrective action. Display Menu Test Test #1: Valid Menu Selection = Canadian Dollars Inputs: Menu Selection = 1 Expected Output: “Do you want to continue with the conversion, Y = Yes, N = No” Currency Type = 1 Test #2: Invalid Menu Selection = Error Inputs: Menu Selection = 7 Expected Output: “Error 4:
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Pixonix is a Canadian company that makes major purchases in the United States. The American and Canadian dollars are always changing, and the company is faced with the difficult decision of how they will react to the constant change in currency exchange rates. Pixonix is very susceptible to failure and losses as a result of this fluctuating exchange rate. This is known as the foreign exchange risk. At present, the Canadian dollar is valued above the US. dollar, but if the Canadian dollar dips, it could
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currency were to fall against the dollar, than the trader would take a loss. Seems simple enough, however traders have option to buy or sell that foreign currency at any time and can go both ways of the currency. So even if the foreign currency were to depreciate against the USD, the trader can still make a profit if they were to sell the dollar on the exchange market. To bring some clarity lets take a look at the Yen. If the Yen were appreciate (rises) against the dollar. A trader would than buy the
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and pondered the impact of the strong Canadian dollar on her firm’s projected financial results. The Report on Business today stated that the Canadian dollar had hit another record, jumping to US$1.0717 from the previous day’s close of $1.0512 after a stronger-than-expected jobs report reduced the odds of an interestrate cut. The Canadian dollar had already been the world’s best-performing major currency this year, increasing 25 per cent against the U.S. dollar and almost seven per cent in the past
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from responding to a rapidly changing economic environment. Discuss what the weaknesses are and how they have hampered Canadian competitiveness. Finally, offer your own assessment, drawing on course materials, of this argument. There are numerous economic weaknesses that the author has argued. This essay mainly focuses on these flaws and how they are hampering Canadian competitiveness. Firstly majority of the companies in Canada are foreign owned or foreign controlled. From manufacturing
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the conversion Yes or No?Currency_Type = 1 | | | | Jamaican Dollar (JMD) | Menu Selection = 1 | The selected currency will be converted to U.S. Dollars.foreignCurrency =1 | Australian Dollar (AUD) | Menu Selection – 2 | The selected currency will be converted to U.S. Dollars.foreignCurrency = 2 | European (EUR) | Menu Selection = 3 | The selected currency will be converted to U.S. Dollars.foreignCurrency = 3 | Canadian (CAN) | Menu Selection = 4 | The selected currency will be converted
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| |Figure S7.1 Swap for Problem 7.1 | Problem 7.2. Company X wishes to borrow U.S. dollars at a fixed rate of interest. Company Y wishes to borrow
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of 10,000 collars @ 7,500 pesos equivalent to US$ 480 @ $0.064 per peso Dec 20x8 Accounts receivables $ 1,215 Sales $ 1,215 Sale of 1,000 rhinestone-studded collars @ 1,500 Canadian dollars equivalent to US$ 1,215 @ $0.810 per Canadian dollar Dec 20x8 Merchandise inventory $ 432 Purchases $ 432 Adjustment entry to record closing stock Dec 20x8 Cost of goods sold $ 48 Purchases
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