I would really appreciate help with these questions please!!! On Canada\'s balan
ID: 2495399 • Letter: I
Question
I would really appreciate help with these questions please!!!
On Canada's balance of payments, a German buying a Canadian bond creates a a. credit on the capital account b. debit on the capital account c. credit on the current account d. debit on the current account 17. On Canada's balance of payments, a Canadian buying an American avocado creates a a. credit on the capital account b. debit on the capital account c. credit on the current account d. debit on the current account 18. A Canadian buying an avocado from the US creates additional a. demand for Canadian dollars b. supply of Canadian dollars c. supply of US dollars d. both a and c 19. Additional shipments of Canadian lumber to the US will cause a. appreciation of the Canadian dollar b. depreciation of the Canadian dollar c. depreciation of the US dollar d. both a and c 20. Falling interest rates in Canada with steady interest rates in the US will cause a. a decrease in the demand for Canadian dollars b. an increase in the demand for Canadian dollars c. a decrease in the supply of Canadian dollars d. an increase in the supply of Canadian dollars e. both a and dExplanation / Answer
16. a. credit on the capital account because it increases the account of Canada and sale and purchase of bonds, stocks and land are shown on the capital account of balance of payment.
17. d. debit on the current account
18. c. Supply of US dollars
19. d. both a and c
20. e. both a and d