When a Canadian Investor Buys a Bond Issued in a Foreign

question 100

Multiple Choice

When a Canadian investor buys a bond issued in a foreign country,

• A)the balance on the capital account decreases.
• B)the balance on the current account decreases.
• C)the balance on the financial account decreases.
• D)the balance of trade decreases.
• E)the statistical discrepancy decreases.

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Definitions:

Geographic Departmentation

An organizational structure where departments or teams are formed based on geographical regions, facilitating focus on local preferences and operational needs.

Product Departmentation

The organizational practice of structuring teams or departments based on different products or product lines within a company.

Customer Departmentation

Relatively self-contained units deliver an organization’s products or services to specific customer groups.

Departmentation

involves the division of an organization into separate departments or units, each managing specific functions or tasks.