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:

Somatic Cell

A cell in a living being that is not involved in reproduction.

Kidney Cell

A type of cell found in the kidney that performs functions such as filtration, reabsorption, secretion, and excretion to regulate body fluids and electrolytes.

Sister Chromatids

The two identical DNA molecules of a duplicated eukaryotic chromosome, attached at the centromere.

Chromosome

A structure that consists of DNA together with associated proteins; carries part or all of a cell’s genetic information.