[Solved] If the Balance of the Current Account in Canada Is

If foreign holdings of Canadian dollars increase, holding all else constant, A)the balance on the Canadian financial account will increase. B)the balance on the Canadian current account will increase. C)the balance on the Canadian capital account will increase. D)the Canadian balance of trade will increase. E)the value of the Canadian dollar will decrease.

If the balance on the current account is $346 billion and the balance on the financial account is -$204 billion, what is the balance on the capital account, assuming no statistical discrepancy? A)$550 billion B)$142 billion C)$0 D)-$142 billion E)-$204 billion

The capital account records A)transactions that affect net capital flows in the economy. B)relatively minor transactions, such as migrants' transfers, and sales and purchases of nonproduced, nonfinancial assets. C)transactions that affect the balance of trade or the balance of services. D)statistical discrepancy between the current account and the financial account. E)transactions between national governments located in each country's capital.

Which of the following would result in a trade surplus for Canada? A)Exports of goods = $450 billion Imports of goods = $400 billion Exports of services = $200 billion Imports of services = $250 billion B)Exports of goods = $450 billion Imports of goods = $450 billion Exports of services = $200 billion Imports of services = $250 billion C)Exports of goods = $450 billion Imports of goods = $460 billion Exports of services = $200 billion Imports of services = $100 billion D)Exports of goods = $450 billion Imports of goods = $490 billion Exports of services = $200 billion

Which of the following would increase the balance on the current account? A)an increase in foreign direct investment B)an increase in the amount of aid money the government sends abroad C)an increase in imports D)an increase in the balance of trade E)an increase in the stock of Canadian patents

China runs a current account surplus with the United States.Which of the following must be true about China's balance of payments with the United States? A)It must run a financial account deficit. B)Its balance of trade must be in deficit. C)Its net exports must be negative. D)Its balance of payments must run a deficit. E)China is the sole beneficiary of trade between the two countries.

If the current account is in deficit and the capital account is zero, then A)the financial account must be in surplus. B)the balance of trade must be in surplus. C)the balance of payments must be in surplus. D)there is a capital outflow. E)the balance of services must be in surplus.

Canada usually exports ________ goods than it imports and exports ________ services than it imports. A)more; more B)more; fewer C)fewer; more D)fewer; fewer

The balance of trade includes trade in A)goods only. B)services only. C)both goods and services. D)financial assets only. E)fixed assets only.

Canada has a closed economy.