Consider This Statement: "Canada Is Characterized by Perfect Capital Mobility

question 24

Multiple Choice

Consider this statement: "Canada is characterized by perfect capital mobility." Which of the following best explains what this statement means?

• A) that labour can easily move across Canada's borders
• B) that purchasing-power parity holds in Canada
• C) that Canada's net foreign investment is zero
• D) that investors' funds can easily move across Canada's borders

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Definitions:

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue; calculated as sales divided by the average investment in assets.

Profit Margin

A financial metric used to evaluate a company's financial health by dividing net income by net sales, expressed as a percentage.

Direct Expenses

Expenses that can be directly attributed to a specific cost object, such as a product, department, or project.

Service Accounting System

An accounting system designed to deal with financial transactions and record-keeping in service-oriented businesses.