If the Canadian dollar is strengthening, then:

(A) it has been unpegged from other currencies.

(B) Canada has adopted a hard peg policy.

(C) Canada has purchasing power parity.

(D) it has appreciated in terms of other currencies.

The correct answer is (D) it has appreciated in terms of other currencies.

Explanation:

Currency appreciation is the increase in the value of a country's currency with respect to one or more foreign reference currencies, which normally occurs in a floating exchange system.

The reasons that can make a currency or currency appreciate are diverse and usually related to a high demand for it. For example, the consideration of a currency as a low risk of depreciation or a very high level of exports of a country (the demand for the currency to pay for exports will increase) are causes that give rise to the appreciation of a currency.