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How Does GNP Differ from GDP? Give an Example of a Product

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Essay

How does GNP differ from GDP? Give an example of a product that would be included in Canada's GNP, but not its GDP.


Definitions:

Destroyed Money

The process of physically eliminating money from circulation, typically by central banks, to manage a currency's supply.

Check Clearing

The process by which banks settle transactions by transferring money from the check writer's account to the recipient's account.

Federal Funds Rate

The interest rate at which banks lend reserve balances to other banks overnight, on an uncollateralized basis.

Discount Rate

The interest rate charged by central banks for short-term loans to commercial banks.

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