With Respect to Canada's Balance of Payments

question 37

Multiple Choice

With respect to Canada's balance of payments,

• A)if the current account is in deficit,the capital account must also be in deficit.
• B)the current account balance must be zero.
• C)the current account balance plus the capital account balance must be zero.
• D)the trade account plus the capital account must equal the official financing account.
• E)the capital account balance must be zero.

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Definitions:

Bargaining Power of Suppliers

The ability of suppliers to influence the terms and conditions of the materials and goods they supply, affecting the buying company's costs and quality of inputs.

Degree of Rivalry

The intensity of competition among firms within the same industry or market.

Bargaining Power of Buyers

The ability of buyers to influence the price and terms of purchase due to their leverage over sellers.

Economic

Related to the production, consumption, and transfer of wealth within a community or society.