Suppose the Majority of the Shares of Bombardier Stock Were

question 36

Multiple Choice

Suppose the majority of the shares of Bombardier stock were sold to an American firm.Assuming all else remains constant, this will

• A)increase the balance of the Canadian financial account.
• B)increase foreign direct investment in Canada.
• C)increase the balance of the Canadian current account.
• D)decrease net portfolio investment in Canada.
• E)create a capital outflow in Canada.

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Definitions:

Inflows

The movement of resources, such as money or goods, into a system, organization, or area.

Outflows

The movement of money out of a business or financial account, typically relating to expenses or investments.

Stockholders' Equity

The residual assets of a company belonging to its shareholders after all liabilities have been deducted.

Current Assets

Assets of a business that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.