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© 2014 Pearson Canada Inc.#20.8 Appendix 20.1 The Canadian Balance of Payments
A current account deficit implies that ____.
A) the country is reducing its claims on foreign wealth
B) the country is increasing its claims on foreign wealth
C) a foreign exchange appreciation is imminent
D) a foreign exchange depreciation is imminent
Answer: A
Diff: 1 Type: MC Page Ref: 3
Skill: Recall
Objective List: 20.2 Discuss international financial transactions and the balance of payments
Canada's 2010 current account was a ____ meaning that ____ exceeded ____.
A) deficit; import payments; export receipts.
B) surplus; import payments; export receipts
C) deficit; capital outflows; capital inflows
D) surplus; capital outflows; capital inflows.
Answer: A
Diff: 2 Type: MC Page Ref: 2
Skill: Recall
Objective List: 20.2 Discuss international financial transactions and the balance of payments
The statistical discrepancy recorded in the Canadian balance of payments indicates ____.
A) some of the other items in the balance of payments may not be measured very accurately
B) that the current account is improperly measured
C) the current capital account metric is substandard
D) the capital account exceeds the current account
Answer: A
Diff: 2 Type: MC Page Ref: 3
Skill: Recall
Objective List: 20.2 Discuss international financial transactions and the balance of payments