Which of the following would be part of Canada's current account? a new office building purchased by Google in Waterloo a vacation home purchased by a Canadian in France the interest payment on Canadian government bonds held by a foreign central bank the purchase of U.S. government bonds by a Canadian

11. Pricing foreign goods The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table forecasts nominal exchange rate data for February 1, 2019, in terms of Canadian dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Foreign Currency United States dollar (USD). euro (EUR) Japanese yen (JPY) Mexican peso (MXN) United Kingdom pound (GBP) Cost of One Unit of Foreign Currency (Dollars) 1.31 1.50 0.012 0.068 1.72 Source: "Bank of Canada," https://www.bankofcanada.ca/rates/exchange/daily-exchange-rates/. Suppose that on February 1, 2019, a marble statue handmade in Mexico is priced at 20,000 MXN. The approximate Canadian dollar price of the statue would be

Use the Japan currency and describe its value relative to the Canadian dollar. Is it under or over-valued compared to the CAD? What problems or benefits do you think this relationship might cause for that country? Why? What problems or benefits do you think this relationship might cause for the Canada?

You are provided with the following information about a country's international transactions during a given year (in millions): Service exports $346 Service imports Merchandise exports Merchandise imports $354 $480 $348 Income flows, net Gifts to foreigners Increase in the country's holding of foreign assets, net (excluding official reserves assets) Increase in foreign holdings of the country's assets, net (excluding official reserves assets) Statistical discrepancy, net credit $153 $142 $352 $252 $154 Calculate the official settlements balance and the current account balance. Is the country increasing or decreasing its net holdings of official reserve assets? Why?

What happens to the exchange rate of a country’s currency when that country experiences high levels of inflation for an extended period of time? How will it affect the flow of that country’s currency in and out of the country? Explain your answers.

What are some of the main reasons not all countries in the EU have adopted the Euro?

What conditions have contributed to Interest Rate Parity not holding in the market during the past few years?

The newly-formed kingdom of Monkeytown is attempting to create their first currency. Many suggestions have been made, but the current favorite is to use bananas. Would bananas be a valid form of money? Why or why not? Would the residents of Monkeytown be able to use their bananas to make purchases in America? Why or why not? In your answer, please define any important economic terms used.

How does the federal reserve regulate the flow and creation of U.S currency?

please solve