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

Question

Quizplus · Accepted Answer

A French tourist spending money in Canada represents an inflow of foreign currency into Canada, which is recorded as a positive entry in the balance of payments.

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