Canada's Balance of Payments Is Sometimes Incorrectly Said to Be

question 89

Multiple Choice

Canada's balance of payments is sometimes incorrectly said to be "in deficit." The reason this must be incorrect is that

• A)Canada's balance of payments has been in surplus for almost all of its history.
• B)unlike most countries,Canada's balance of payments is almost always balanced.
• C)like any other country in the world,Canada's balance of payments is always perfectly balanced.
• D)the Canadian government has long been committed to avoiding balance of payments deficits.
• E)it is not possible for capital flows to be in a deficit situation.

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Definitions:

Inequality

The unequal distribution of resources, opportunities, rights, and powers within a society.

Social Policies

Strategic plans and actions implemented by governments to address and manage social issues, such as poverty, education, and healthcare.

Poverty

A state where an individual or group lacks the financial resources and essentials for a minimum standard of living.

Power

The ability or capacity to direct or influence the behavior of others or the course of events.