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If the Canadian dollar is strengthening, then:
(A) it has been unpegged from other currencies.
(B) Canada has adopted a hard peg policy.
© Canada has purchasing power parity.
(D) it has appreciated in terms of other currencies.

Ask by Bernard Martinez. in the United States
Mar 30,2025

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It has appreciated in terms of other currencies.

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Bonus Knowledge

When the Canadian dollar is strengthening, it indicates that it is appreciating in value compared to other currencies. This could mean that Canadian goods and services are becoming more expensive for foreign buyers, which could impact trade balances. A stronger dollar often reflects positive economic indicators such as low inflation, strong economic growth, or rising interest rates, making it a fascinating aspect of currency dynamics!
You might find it interesting that currency strength can also affect international travel. For instance, if the Canadian dollar is strong, Canadians traveling abroad will enjoy better purchasing power, making their trips more enjoyable. However, it may challenge exporters who find their products pricier for overseas buyers. So, whether you’re planning to travel or study the market, exchange rates can have a big impact!

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