If Canada Is a "Net Borrower" from Abroad

question 122

Multiple Choice

If Canada is a "net borrower" from abroad,

• A)Canada must be exporting more than it is importing.
• B)net capital flows must be negative.
• C)domestic saving is less than domestic investment.
• D)net foreign investment must be positive.
• E)Canadian incomes must be falling.

---

Definitions:

Balance Sheet Columns

The sections within a balance sheet that display a company's assets, liabilities, and shareholders' equity at a specific point in time.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.

Current Assets

Resources owned by a company that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of the business.

Total Liabilities

The aggregate of all debts and financial obligations a company owes to outside parties.