When There Is a Deficit in the Canadian Balance of Payments

question 20

Multiple Choice

When there is a deficit in the Canadian balance of payments on the current account,we pay for the difference by:

• A) allowing the price of currency to rise.
• B) allowing the price of currency to fall.
• C) buying assets from other countries.
• D) selling assets to other countries.

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Definitions:

Direct Labor

Direct labor refers to the wages and other costs for labor that is directly involved in the production of goods, such as assembly line workers.

Continuous Process

A production process where the input materials are continuously fed and processed to produce output, typically seen in industries like chemicals and petroleum.

Transferred-In Costs

Costs that are accumulated during the production process and then moved from one department to another within a manufacturing environment.

Direct Materials

Raw materials that can be directly traced to the production of specific goods or services in a manufacturing process.