Consider the Components of Canada's Balance of Payments Accounts

question 72

Multiple Choice

Consider the components of Canada's balance of payments accounts.Payments by Canadians of interest and dividends on foreign-owned capital located in Canada

• A)are a debit in the current account.
• B)are a debit in the capital account.
• C)contribute to a surplus on the trade account.
• D)contribute to increased foreign-exchange holding by the Bank of Canada.
• E)are a credit in the capital account.

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Definitions:

Carbonic Anhydrase

Enzyme that catalyzes the reaction between carbon dioxide and water to form carbonic acid.

Diuretic Effect

An increase in the excretion of urine by the body, often stimulated by certain substances or medications.

Carbonic Acid

is a weak acid formed in solution when carbon dioxide is dissolved in water, playing a key role in the buffering of blood pH.

Extracellular Osmolality

The concentration of solutes outside cells, critical for maintaining fluid balance and cell shape by influencing water movement.