v Assignment Instructions Students will use Chapter 15 in the eText, the suggested references at the end of the book, and the supplemental resources provided in the syllabus to complete the following. . Draw a properly labeled foreign exchange market graph for the Canadian dollar in terms of US dollars. Make sure to label the point of equilibrium. Assuming a decline in the value of the Canadian dollar, show how demand for the Canadian dollar would shift on a properly labeled graph. Label the new equilibrium point as well as shifts in supply/demand. If interest rates rise in the US as compared to that with Canada, what effect will this change have on the demand for US dollars? What will happen in terms of investors supplying US dollars to foreign exchange markets? Graphically represent the shift in the third bullet point. How can an unexpected fall in exchange rates injure the financial health of a nation's banks? What effects can a central bank have on the exchange rate? Explain. If Canada had a of trade with exports equal to imports of goods and services, does that mean the country would have a balance of trade with the US and its other trading partners? All trading partners? Explain. Bullet Point 1 Demonstrated Not Demonstrated Bullet Point 2 Demonstrated Not Demonstrated Bullet Point 3 Demonstrated Not Demonstrated Bullet Point 4 Demonstrated Not Demonstrated Bullet Point 5 Demonstrated Not Demonstrated Bullet Point 6 Demonstrated Not Demonstrated Bullet Point 7 Demonstrated Not Demonstrated