Canada's Balance of Payments Is Sometimes Incorrectly Said to Be

question 37

Multiple Choice

Canada's balance of payments is sometimes incorrectly said to be "in deficit" . The reason this must be incorrect is that

• A)unlike most countries, Canada's balance of payments is almost always balanced.
• B)the Canadian government has long been committed to avoiding balance of payments deficits.
• C)it is not possible for capital flows to be in a deficit situation.
• D)like any other country in the world, Canada's balance of payments is always perfectly balanced.
• E)Canada's balance of payments has been in surplus for almost all of its history.

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Definitions:

Horizontal Price Fixing

Horizontal price fixing occurs when companies at the same level of the supply chain agree to set prices or other market conditions, reducing competition.

Grocery Stores

Retail stores that primarily sell food, including fresh produce, meats, dairy products, and various packaged goods.

Loaf of Bread

A shaped mass of baked bread, commonly sliced for consumption and made from a variety of grains.

Price Fixing

An illegal agreement among competitors to set prices at a certain level, rather than letting them fluctuate naturally with market forces.