Which of the Following Is Correct with Respect to Exchange

Multiple Choice

Which of the following is correct with respect to exchange rates?

A) The value of one country's currency relative to another varies with changes in GDP, but not as a response to market conditions.
B) The value of the Canadian dollar falls as the foreign demand for Canadian goods rises.
C) Exchange rates typically fluctuate by very small amounts on a daily basis.
D) Fluctuation in exchange rates have little impact on the balance of trade.
E) All of these are correct.