Refer to Table 17-2. The balance of trade is
22) Refer to Table 17-2. The current account balance is
23) Refer to Table 17-2. The capital account balance is
1. Canadian buys a German camera$ 500
2. Canadian buys stock in a German company3,000
3. Canadian flies from Berlin to Paris on German airline600
4. German worker in Canada sends money to family in Germany100
5. German worker in Canada deposits money in German bank150
6. Canadian firm pays dividend to family in Germany225
7. German firm buys a computer from IBM3,000
8. German firm sends interest payment to a family in the Canada75
9. German buys a Canadian book20
10. German tourist takes family to Montreal350
11. German worker in Canada receives a birthday present from home 40
12. German tourist gets a haircut in Toronto65
24) Refer to Table 17-3. Based on the transactions in the table, what is the change in the Canadian balance of trade?
25) Refer to Table 17-3. Based on the transactions in the table, what is the change in the Canadian capital account?
26) Refer to Table 17-3. Based on the transactions in the table, what is the change in the Canadian current account balance?
27) Refer to table 17-3. Suppose the transactions in the table are added to a balance of payments account that is already in balance. What will have to take place to keep the balance of payments in balance?
A) Nothing will have to be done as the accounts are in balance.
B) Nothing will have to be done as the accounts are in equilibrium.
C) The Canadian government will have to make official reserve transactions equal to $1,025.
D) Foreign governments will have to make official reserve transactions equal to -$1,025.
28) The balance of income earned on assets owned in other countries is referred to as
A) the balance of services.
B) the balance of government bonds.
C) investment income.
D) the official transfer.
29) Investment income represent
A) the balance of services coming into a country.
B) the balance of government bonds bought and sold by residents of the country.
C) the balance of income earned on assets owned in other countries.
D) the balance of official transfers within the economy.
30) If there is a positive sign in front of transfers for Canada, then
A) Canada exported more services than it imported.
B) the value of Canadian gifts to foreigners was less than foreign gifts to Canadians.
C) Canada imported more commercial financial assets than it exported.
D) Canada had a positive balance of trade.
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