Consider the Components of Canada's Balance of Payments Accounts

question 134

Multiple Choice

Consider the components of Canada's balance of payments accounts.The purchase of foreign assets by Canadians is,for Canada,considered a capital ________ and is recorded as ________.

• A)outflow; a debit on the current account
• B)outflow; a debit on the capital account
• C)inflow; a credit on the current account
• D)inflow; a credit on the capital account
• E)inflow; a debit on the capital account

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Definitions:

Interpretations

The act of explaining or understanding the meaning of something, often applied to data, texts, or artworks.

Cognitive Appraisal

The process by which an individual evaluates and interprets a situation or stimulus to determine its significance for his or her well-being.

Zajonc

A psychologist known for his work in social and cognitive processes and specifically for his theories on social facilitation and the mere exposure effect.

Lazarus

Refers to Richard Lazarus, a psychologist known for his theory on stress and emotion focusing on cognitive appraisal.