The Case for Austerity Is Different in Canada Than in Greece

question 150

Multiple Choice

The case for austerity is different in Canada than in Greece because

• A)Canada's government debt is low and there is little danger of the government defaulting on its debt.
• B)the Canadian banking sector was bailed out by the federal government in 2009.
• C)Canada's federal government hasn't stimulated the economy in 20 years.
• D)Canada's government is currently running a structural budget deficit.
• E)Canada has more trade links with the rest of the world.

---

Definitions:

Unrealised Intragroup Profits

Profits arising from transactions within a group of companies that have not yet been realized outside the group, often requiring elimination for consolidated financial statements.

Fair Value Adjustments

Adjustments to the reported value of an asset or liability to reflect its current market value.

Fair Value

The amount one would expect to receive from the sale of an asset or the cost to transfer a liability during a structured transaction among parties in the market as of the valuation date.

Financial Instruments

Contracts that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity, such as stocks, bonds, or derivatives.