Which One of the Following Transactions Would Appear as a Debit

question 50

Multiple Choice

Which one of the following transactions would appear as a debit in the current account of the Canadian balance of payments?

• A)The Arabian Capital Investment Corporation makes a loan to a Canadian firm.
• B)A Canadian subsidiary exports raw materials to its Dutch parent company.
• C)Canadians receive dividends on U.S.investment in Latin America.
• D)Canadian tourists in France purchase cases of wine.
• E)The Bank of Canada purchases euros to hold in its official reserves.

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