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.

Respuesta :

Answer:

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.