How do the Bank of Canada's monetary policy actions influence the exchange rate?

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Part 1

A.

The Bank of Canada influences the exchange rate by changing the Canadian interest rate differential.

B.

The Bank of Canada can influence the exchange rate only if it changes expectations.

C.

The Bank of Canada influences the exchange rate by conducting transactions in the foreign exchange market.

D.

The Bank of Canada can't influence the exchange rate because the Bank of Canada has no influence on foreign interest rates.