Of the Following, the One That Appears in the Current

question 136

Multiple Choice

Of the following, the one that appears in the current account of the balance of payments is ________.

• A) an Italian investor's purchase of TD stock
• B) income earned by Canadian subsidiaries of Barclay's Bank of London
• C) a loan by a Swiss bank to a Canadian corporation
• D) a purchase of a British Treasury bond by the Bank of Canada

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Definitions:

Resources Expended

The amount of materials, labor, and capital used in the production of goods or services.

Federal Government

The national government of a federal country, which holds the authoritative powers conferred to it by a constitution.

Deficit

A deficit occurs when an entity's expenditures exceed its revenues over a specified period, often referring to government budgets.

Surplus

The situation in which the quantity supplied of a good exceeds the quantity demanded, often resulting in downward pressure on the price.