RSM100Y1 Lecture Notes - Lecture 2: Loonie, Canadian Dollar, Travel Agency
Document Summary
Interest rate is very low; people want to buy more. More houses people want to buy, the higher the prices will be. The more attractive the bonds are; the higher canadian dollars will be. Loonie sinks below 70 cents. (hasn t been this low since may 2003. ) (falling oil prices druve loonie lower) (low loonie will drive up food prices) (oil trading at 12-year lows for second straight days) () More and more wells in the market place. Countries are producing a lot more oil than in the past. Manufacturing sectors will benefit. (not for those highly depends on us import. ) Travel agency (underling the prices in us dollars) Car industries. (the burden will depend how much consumers are willing to pay more) Groceries. (burden will mostly be on consumers) Suppliers uses financial statements to see if consumers can pay for their products. Creditors uses financial statements to see if you are liquid enough to pay back.