Description: After years of cuts and restraint on interest rates, on Wednesday the Bank of Canada raised interest rates for the second time in three months. The Bank’s move sparked a rally in the loonie, with the Canadian dollar rising to its highest level in two years versus the United States dollar. The Bank appears to be optimistic that Canada’s economy is bouncing back after having endured some shocks from the collapse of oil prices a couple of years ago.
Date: September 7, 2017
1) What do you think about a rise in interest rates? How does it affect you as a student?
2) Can you find a reference to interest in Wiley’s Kimmel, Financial Accounting: Tools for Business Decision-Making, Seventh Canadian Edition? Where?
3) What items in a company’s financial statements may be impacted by a rise in interest rates? Take a look at the financial statements featured in Chapter One of Wiley’s Financial Accounting: Tools for Business Decision-Making, Seventh Canadian Edition. Perhaps divide your class into teams and see which team can find the most items impacted by interest in five minutes.