Assume Canada has a financial account of 30 billion Canadian dollars, and its capital account is 10 billion Canadian dollars. If there is no statistical discrepancy, this implies that Canada's current account equals OA. 40 billion Canadian dollars. OB. -40 Canadian dollars. O C. -20 billion Canadian dollars. OD. 20 billion Canadian dollars.

Assume Canada has a financial account of 30 billion Canadian dollars, and its capital account is 10 billion Canadian dollars. If there is no statistical discrepancy, this implies that Canada's current account equals OA. 40 billion Canadian dollars. OB. -40 Canadian dollars. O C. -20 billion Canadian dollars. OD. 20 billion Canadian dollars.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: International Finance

Section: Chapter Questions

Problem 3QP

See similar textbooks

Similar questions

Your friend, a loyal Apple customer, has set out a table of Apple’s net sales also adding his/her expectations about 2021 developments. Knowing that US dollar is strengthening against foreign currencies, do you agree with the 2021 net sales figures of iPad and Services?
Suppose that Thai consumers make several purchases of foreign-produced cosmetic products, ceteris paribus, and that this is the only transaction, answer the following sub-questions only in words.a) What happens in the FOREX market for Thai Baht (THB)?b) What happens to the value of the Thai Baht relative to other currencies in the FOREX market?c) What happens to the Thai net exports eventually?
Why do people of home country demand foreign currencies and why do they supply foreign currencies in forex market. Assuming that capital inflow in home country increases due to more negative impact of Corona virus in developed countries, explain whether PKR will appreciate or depreciate.
Suppose that the government decides to cut spending. In a three graphs diagram, show theimpact of this policy on real interest rate, national saving, investment, net capital outflows,demand for currency (NX), and supply of currency? Will the currency appreciate ordepreciate?
You are considering buying a bottle of wine. Supposethat the euro appreciates by 15% with respect to theU.S. dollar. Are you more or less likely to buy a bottleof Californian wine or French wine?
Your friend, a loyal Apple customer, has set out a table of Apple’s net sales also adding his/her expectations about 2021 developments. Assuming that net sales of iPhones not being largely affected by the exchange rate developments but by new versions of iPhones, would you expect percentage share of net sales of iPhones to increase or decrease with stronger US. dollar against foreign currencies in 2021 (but without launching new iPhone models)?
What determines the exchange rate? If a nation's currency appreciates in the foreign market, how will this impact net exports? Explain. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Pls help with below homework. What does a negative financial account balance mean for the economy of the country concerned? For Example, Until 2013 the financial account was presented like other accounts, in credit and debit. But after 2013, the principle of recording changed.
“Is FDI a Good Sign for any country to Raise its capital” Justify the statement. Discuss the Reasons of Decreasing of Foreign Direct Investment Globally? Being a student of Finance How Can you increase FDI Globally in a good manner with suitable justification?
Suppose the RBA decreasesits targetinterest rate. What would be the impact on the Australiandollar and stimulate net exports. In your answer, discuss the actions of Australian and foreignresidents towards the Australian dollar.
. What is the dollar value of the invoices in exercise 13 if the dollar:a. depreciates 10 percent against the Australian dollarto b. appreciates 10 percent against the British poundc. depreciates 10 percent against the Indian rupeed. appreciates 20 percent against the Japanese yene. depreciates 100 percent against the euro
a) Would each of the following transactions be included in net exports or net capital outflow? Be sure to say whether it would represent an increase or decrease in that variable. i) An Indian buys a Samsung TV ii) An Indian buys a share of sony stock iii) The sony pension fund buys a bond from the Indian government iv) A worker at a Toyota plant in Japan buys some Nagpur oranges from an Indian farmer