If the Balance of the Current Account in Canada Is

question 105

Multiple Choice

If the balance of the current account in Canada is -$90 billion, which of the following is most likely to be true?

• A)The balance on the financial account is positive.
• B)The trade balance is positive.
• C)Net foreign investment is positive.
• D)The balance on the capital account is negative.
• E)The Canadian dollar will appreciate.

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Definitions:

FICA Taxes

Taxes imposed on both employers and employees to fund Social Security and Medicare in the United States.

Retirement Benefits

Payments or other benefits provided to employees after they retire, such as pensions or health insurance.

FICA-OASDI

Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance, the tax withholding that funds Social Security and Medicare.