A fall in the value of the Canadian dollar, which raises the exchange rate, is called:
A) an appreciation.
B) a depreciation.
C) a flexible exchange rate.
D) a fixed exchange rate.

Question

Quizplus · Accepted Answer

A fall in the value of the Canadian dollar, which raises the exchange rate, is referred to as a depreciation. This means the Canadian dollar has lost value relative to other currencies, making it more expensive to purchase foreign currencies.

A Fall in the Value of the Canadian Dollar, Which