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28 April, 22:37

If the Canadian dollar is strengthening, then:

(A) it has been unpegged from other currencies.

(B) Canada has adopted a hard peg policy.

(C) Canada has purchasing power parity.

(D) it has appreciated in terms of other currencies.

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  1. 28 April, 22:55
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    The correct answer is (D) it has appreciated in terms of other currencies.

    Explanation:

    Currency appreciation is the increase in the value of a country's currency with respect to one or more foreign reference currencies, which normally occurs in a floating exchange system.

    The reasons that can make a currency or currency appreciate are diverse and usually related to a high demand for it. For example, the consideration of a currency as a low risk of depreciation or a very high level of exports of a country (the demand for the currency to pay for exports will increase) are causes that give rise to the appreciation of a currency.
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