Consider Canada's Balance of Payments

question 108

Multiple Choice

Consider Canada's balance of payments.If the Canadian government were to purchase more foreign-exchange reserves,this transaction

• A)represents the sale of an asset,and thus enters as a credit item in the official financing account.
• B)represents the purchase of an asset from abroad,and thus enters as a debit item in the official financing account.
• C)enters as a credit in the current account.
• D)enters as a credit in the capital account.
• E)represents the purchase of an asset from abroad,and thus enters as a debit item in the capital-service account.

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Definitions:

Utils

A hypothetical unit of measurement used in economics to quantify the level of utility or satisfaction derived from consuming goods or services.

Pairs of Socks

Multiple sets of soft foot garments, each set consisting of two items, typically worn for warmth, comfort, or hygiene reasons.

Opportunity Cost

The expense incurred by not choosing the second-best option available during decision-making.

United States

A country in North America consisting of 50 states and a federal district, known for its large economy and diverse population.