Which One of the Following Transactions Would Appear as a Debit

question 50

Multiple Choice

Which one of the following transactions would appear as a debit in the current account of the Canadian balance of payments?

• A)The Arabian Capital Investment Corporation makes a loan to a Canadian firm.
• B)A Canadian subsidiary exports raw materials to its Dutch parent company.
• C)Canadians receive dividends on U.S.investment in Latin America.
• D)Canadian tourists in France purchase cases of wine.
• E)The Bank of Canada purchases euros to hold in its official reserves.

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Definitions:

Papillae

Small raised projections on the tongue that contain taste buds, responsible for the sensation of taste.

Hertz

The unit of frequency in the International System of Units (SI), equal to one cycle per second, named after Heinrich Hertz.

Elderly Person

An individual who has reached an advanced stage of life, often defined as being 65 years of age or older.

Sine Waves

Mathematical curves that describe a smooth, repetitive oscillation; commonly used to represent periodic phenomena in physics and engineering.