Which one of the following transactions would be recorded as a positive entry in the Canadian balance of payment accounts?
A)A French tourist spends $3,000 while visiting Banff.
B)A Canadian corporation sends interest payments on outstanding bonds to U.S.citizens.
C)A Canadian citizen purchases a U.K.government bond.
D)A Canadian tourist spends $3,000 while visiting Banff.
E)A Canadian tourist spends $3,000 while visiting France.

Question

Quizplus · Accepted Answer

When a French tourist spends money in Canada, it is considered an inflow of foreign currency into Canada, which is recorded as a positive entry in the Canadian balance of payments. This reflects the receipt of funds from abroad, contributing positively to the nation's financial account.

Which One of the Following Transactions Would Be Recorded as a Positive