Question : 81) A rise in the Canadian-dollar price of foreign currency : 1384547

81) A rise in the Canadian-dollar price of foreign currency is

A) a decrease in the exchange rate.

B) an appreciation of the Canadian dollar.

C) a depreciation of the Canadian dollar.

D) a gain in the relative value of the Canadian dollar.

E) a rise in the external value of the Canadian dollar.

82) If the exchange rate between Mexican pesos and Canadian dollars is 1 peso = $0.1428,

A) one peso exchanges for $0.2857.

B) one dollar exchanges for 7 pesos.

C) one dollar exchanges for 14.28 pesos.

D) one peso exchanges for $1.42.

E) one dollar exchanges for .028 pesos.

83) Other things being equal, a depreciation of the Canadian dollar leads to

A) an increase in the number of foreign tourists travelling to Canada.

B) an increase in the number of Canadian citizens travelling abroad.

C) a negative effect on the trade account of Canada’s balance of payments.

D) an increase in desired merchandise imports.

E) a decrease in desired merchandise exports.

84) When you hear on the news that the “Canadian dollar is at 87 cents U.S.,” what is the Canada/U.S. exchange rate expressed as the Canadian-dollar price of one U.S. dollar?

A) $0.87

B) $1.00

C) $1.13

D) $1.15

E) $1.87

85) Suppose we hear on the news that the Canadian dollar is valued at 94.6 U.S. cents. In this case, the Canada-U.S. exchange rate is

A) 94.6.

B) 0.946.

C) 0.0946.

D) 1.057.

E) 10.57.

86) Suppose we hear on the news that the Canadian dollar is valued at U.S.$1.08. In this case, the Canada-U.S. exchange rate is

A) 92.59.

B) 9.259.

C) 0.9259.

D) 1.08.

E) 0.0108.

87) Other things being equal, if the Canadian dollar depreciates, the quantity of foreign exchange demanded will decline because

A) the Canadian-dollar price of foreign goods will rise.

B) the foreign-exchange price of foreign goods will fall.

C) the Canadian-dollar price of foreign goods will fall.

D) the foreign-exchange price of foreign goods will rise.

E) the Canadian-dollar price of Canadian goods will rise.

88) Suppose that Canada imposed a tax of 10% on all foreign-exchange transactions. We can predict that

A) the Canadian dollar would depreciate by 10% in response and no change in trade would occur.

B) the tax would reduce the profit of exporters and importers but would not affect the volume of trade.

C) the gains from trade would be reduced and less trade would occur.

D) the tax would have no effect on the volume of trade because it affects only Canadians, and not foreigners.

E) the Canadian dollar would appreciate due to increased demand.

89) Suppose that a laptop computer sells in China for 3000 yuan, and that the exchange rate between the Canadian dollar and the yuan is 12 yuan per Canadian dollar. If you buy the laptop in China it will cost you the equivalent of ________ Canadian.

A) $3600

B) $360

C) $250

D) $36

E) $25

90) Suppose that a shipment of electronic equipment is arriving in Canada from Taiwan. The price in Taiwanese dollars (TWD) is 20 million TWD. Assume the exchange rate between the Canadian dollar and the TWD is 28 TWDs per dollar. The Canadian-dollar value of the shipment is

A) $7142.

B) $56 000.

C) $5 600 000.

D) $560 000.

E) $714 286.