Which of the Following Would Appear as a Credit Item

question 112

Multiple Choice

Which of the following would appear as a credit item in the trade account of the Canadian balance of payments?

• A)dividends payable to Canadians on Canadian-owned assets located in Cuba
• B)sales of Canadian steel to European importers
• C)Canadian purchases of American-made vehicles
• D)purchases by Japanese firms of shares of Canadian firms in the entertainment industry
• E)the opening of an Ottawa branch of a Swiss bank

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Definitions:

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price in a specific time period.

Equilibrium Price

The price at which the quantity of goods demanded equals the quantity of goods supplied, commonly referred to as the market-clearing price.

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.

Equilibrium Prices

The price at which the quantity of a good supplied equals the quantity demanded, balancing the market and clearing any surplus or shortage.