Suppose Canada Has a Zero Balance (No Surplus or Deficit)

question 224

Multiple Choice

Suppose Canada has a zero balance (no surplus or deficit) on the both the current account and on the capital account. Then Canadian businesses export new snow blowing machinery to Italy, which Italy finances by borrowing from a Canadian bank. On Canada's balance of payments accounts there is now a current account

• A) surplus and a financial account surplus.
• B) surplus and a financial account deficit.
• C) deficit and a financial account surplus.
• D) deficit and a financial account deficit.
• E) surplus and a financial account balance of zero.

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Definitions:

Secondary Carbons

Carbon atoms attached to two other carbon atoms in an organic molecule; involved in many chemical reactions due to their distinct reactivity.

Isobutylheptane

A hypothetical or less common name for an organic compound, suggesting a structure derived from heptane with an isobutyl group attached, but not a standard or widely recognized chemical name.

N-Alkanes

A class of hydrocarbons with the general formula CnH2n+2, where n is an integer, representing saturated straight-chain hydrocarbons.

Tert-Butyloctane

An organic compound characterized by an octane backbone with a tert-butyl group attached to one of its carbon atoms.