Which of the Following Statements About the Canadian Balance of Payment

question 66

Multiple Choice

Which of the following statements about the Canadian balance of payment is true?

• A)Historically,Canada has for the most part had a current account surplus.
• B)Canada has always had a capital account deficit.
• C)Canadians' ownership of foreign assets has always been greater than foreigners' ownership of Canadian assets.
• D)Canada has always maintained a current account balance.

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Definitions:

Put

An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time.

Premium

The amount paid for an insurance policy or an amount paid above the nominal value for a security; also, the fees paid for an option contract.

Protective Put

Purchase of an asset combined with a put option on that asset to guarantee proceeds at least equal to the put’s exercise price.

Underlying Asset

The financial asset upon which a derivative instrument, such as a futures or options contract, is based.