Which One of the Following Transactions Would Appear as a Credit

question 27

Multiple Choice

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

• A)Canadian firms pay dividends to foreigners.
• B)French tourists in Canada buy Canadian dollars.
• C)Canadians purchase foreign securities.
• D)Coffee is imported from Venezuela.
• E)A Dutch firm purchases a uranium mine in Canada.

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Definitions:

Expansion

describes the phase in a business or an economy's lifecycle where it is growing in size, reach, or production capabilities.

Adjacent Lot

A parcel of land located directly next to or in close proximity to another parcel.

Equipment

Physical assets used in the operation of a business, often requiring significant capital investment.

Initial Cost

Refers to the initial expenditure or investment required to start a project, acquire an asset, or launch a business operation.