Based on the Following Information, What Is the Balance of the Current

question 186

Multiple Choice

Based on the following information, what is the balance of the current account? Exports of goods and services = $12 billion
Imports of goods and services = $14 billion
Net income on investments = -$4 billion
Net transfers = -$1 billion
Increase in foreign holdings of assets in Canada = $6 billion
Increase in Canadian holdings of assets in foreign countries = -$3 billion

• A)-$7 billion
• B)-$3 billion
• C)-$2 billion
• D)$1 billion
• E)$3 billion

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Definitions:

Remeasured

The process of adjusting the value of an asset or liability to reflect its current market value or to correct any errors in initial measurement.

Depreciation Expense

The portion of the total cost of a tangible asset that is charged as an expense to the income statement over its useful life, reflecting wear and tear.

Temporal Method

An exchange rate conversion method used in international finance to translate the financial statements of a foreign subsidiary to the parent company's currency, involving specific asset and liability conversions at historical exchange rates.

Remeasured

Adjusted or recalculated, often in the context of converting the value of foreign currency transactions or financial statements into a functional currency.