Payments by Canadians of Interest and Dividends on Foreign- Owned

question 9

Multiple Choice

Payments by Canadians of interest and dividends on foreign- owned capital located in Canada

• A)are a debit in the current account.
• B)are a debit in the capital account.
• C)contribute to increased foreign- exchange holding by the Bank of Canada.
• D)are a credit in the capital account.
• E)contribute to a surplus on the trade account.

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Definitions:

Negotiate

The process of discussing terms and conditions with the aim of reaching an agreement or compromise.

Perfect Tender Rule

A principle in commercial law that a seller's performance must exactly meet the contract specifications or the buyer can reject the goods.

Commercial Unit

A term used in the Uniform Commercial Code referring to a standard of measure, item, or a set of items that are treated as a single unit for the purposes of a transaction.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, intended to standardize laws across states.