What Is Most Likely to Result If Foreigners Decide to Withdraw

question 118

Multiple Choice

What is most likely to result if foreigners decide to withdraw the funds that they have loaned to Canada over the past two decades?

• A) Canadian net exports will rise.
• B) Canadian saving will rise.
• C) Canadian domestic investment will rise.
• D) Canadian imports will rise.

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Definitions:

Treasury Stock

Stock that a corporation has issued and then reacquired.

Statement of Cash Flows

A financial report that provides aggregated data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Operating Activities

Operating activities involve the primary day-to-day functions of a business related to producing and selling its goods and/or services, reflected in the cash flow statement.

Investing Activities

Transactions involving the purchase or sale of long-term assets and other investments not considered cash equivalents.