Figure 5.4 Suppose the World Consists of Two Large Open Economies, Canada

question 80

Multiple Choice

Figure 5.4

Suppose the world consists of two large open economies, Canada and the rest of the world. The figures above represent loanable funds graphs for these two economies.
-Refer to Figure 5.4.At an interest rate of 7%,

• A) foreign borrowers want to borrow more from international capital markets than is available.
• B) Canadian borrowers want to borrow more from the domestic market than is available.
• C) foreign lenders have more to lend in international capital markets than meets demand.
• D) Canadian borrowers want to borrow less in international capital markets than is available.

---

Definitions:

Computerized Accounting Systems

Digital systems that manage, record, and process financial transactions using software, thereby improving accuracy and efficiency.

FOB Destination

A term specifying that the seller is responsible for the goods and the cost of shipping until they are received by the buyer at the destination.

Ending Inventory

The cumulative worth of all remaining inventory a company holds at the conclusion of a financial period.

Merchandising Business

A type of business that purchases goods for resale to customers, aiming to sell the goods at a higher price than the cost to earn a profit.