Question :
1) A credit entry in Canada’s balance-of-payments accounts
A) any transaction : 1384539
1) A credit entry in Canada’s balance-of-payments accounts
A) is any transaction that involves a payment to other nations.
B) is any transaction that involves a receipt from other nations.
C) typically results in less foreign exchange being held by Canadians.
D) typically gives rise to the acquisition of foreign exchange on current-account transactions and the loss of foreign exchange on capital-account transactions.
E) can be recorded only by the central bank in the official financing accounts.
2) When a Japanese firm buys Canadian lumber, this transaction appears as a
A) debit on the Canadian capital account.
B) credit on the Japanese capital account.
C) credit on the Canadian current account.
D) credit on the Japanese current account.
E) debit on Canada’s trade account.
3) A debit entry in the Canadian balance-of-payments accounts
1) is a credit in the balance-of-payments accounts for foreign countries;
2) arises when Canadian assets are sold to foreigners;
3) typically results in more foreign exchange being held by foreigners.
A) 1 only
B) 2 only
C) 3 only
D) 1 and 2
E) 1 and 3
4) A credit entry in the Canadian balance-of-payments accounts
1) is a credit in the balance-of-payments accounts for foreign countries;
2) occurs when Canadians receive investment income from foreign countries;
3) is any transaction that results in a payment to other nations.
A) 1 only
B) 2 only
C) 3 only
D) 1 and 2
E) 2 and 3
5) Which of the following is true? A credit entry in the Canadian balance-of-payments accounts
A) is any transaction that results in a payment to other nations.
B) typically results in more foreign exchange being held by foreigners.
C) is a credit in the balance-of-payments accounts for foreign countries.
D) arises when Canadian assets are sold to foreigners.
E) arises when Canadians purchase assets from foreigners.
6) Payments made to foreign firms arising from Canadians’ purchases of foreign goods and services are shown in Canada’s
A) capital account.
B) current account.
C) official financing account.
D) capital-service account.
E) foreign-currency reserves.
7) Canadian firms’ receipts from foreign consumers arising from the exports of goods and services are shown in Canada’s
A) investment account.
B) capital account.
C) official financing account.
D) trade account.
E) capital-service account.
8) With respect to Canada’s balance of payments,
A) if the current account is in deficit, the capital account must also be in deficit.
B) the current account balance must be zero.
C) the trade account balance must be zero.
D) total payments must equal total receipts.
E) if the current account is in surplus, the capital account must also be in surplus.
9) With respect to Canada’s balance of payments,
A) if the current account is in deficit, the capital account must also be in deficit.
B) the current account balance must be zero.
C) the current account balance plus the capital account balance must be zero.
D) the trade account plus the capital account must equal the official financing account.
E) the capital account balance must be zero.
10) The capital-service account in Canada’s balance-of-payments is the section of the
A) capital account which records the net change in Canadian investments abroad and the net change in foreign investments in Canada.
B) capital account which represents the financial reserves held by the Bank of Canada which they can use in the foreign-exchange market.
C) current account which records the interest charges and earnings of Canadian importers and exporters.
D) current account which records income paid to foreign owners of assets in Canada and income received by Canadians for assets located abroad.
E) current account which records the financial reserves held by the Bank of Canada which they can use in the foreign-exchange market.
