Question 3. When Canada imports more than it exports, it is necessary for Canada to import capital from foreign countries to finance its Current Account deficits." ( they will sell Canada government bonds to foreigners and perhaps Canadians too). Explain why. Use economic/financial terminology. (4 MARKS) Question 4 Why does most interbank currency trading worldwide involve the US dollar? (3 MARKS) Question 5 Your company in Canada imports raw materials from the US. You think that within the next 6 months the Canadian dollar will lose value against the US S. What can you do to mitigate this risk? (3 MARKS) Question 6 The Federal Reserve has indicated that it will raise interest rates? What will the Bank of Canada most likely do? Why? ( explain using proper terminology) (4 MARKS) Question 7 Question 7 Canada the US and Mexico are all on the same continent the AMERICAS and the economies are very tied together due to the USMCA. Do you think there should be a common currency? Why or Why not? (3 MARKS) (there is no right or wrong answer to this question, just be logical)