Which of the Following Would Call for a Monetary Inflow

question 3

Multiple Choice

Which of the following would call for a monetary inflow into the Canadian economy?

• A)travel abroad by Canadians
• B)the sale of insurance by Canadian firms to Brazilian shippers
• C)Canadian government transfers to low income countries
• D)Canadian imports of German automobiles
• E)an interest payment by the Canadian federal government to a British bondholder

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Definitions:

Interest

The fee paid for borrowing money, typically a percentage of the principal, or the earnings from investment.

Equivalent Value

The value of one thing in terms of another, especially after considering different factors or conditions.

Rate of Return

The increase or decrease in the value of an investment during a certain timeframe, represented as a percent of the investment's initial cost.

Compounded Quarterly

Refers to the application of the compound interest rate to an investment or loan on a quarterly basis.