Explain how each of the following transactions would enter the Canadian balance of payments accounts. Discuss only
Question:
a. The Canadian government sells military equipment to a foreign government.
b. A London bank sells yen to, and buys Canadian dollars from, a Swiss bank.
c. The Bank of Canada sells yen to, and buys dollars from, a Swiss bank.
d. A Canadian bank receives the interest on its loans to Brazil.
e. A Canadian collector buys some ancient artifacts from a collection in Egypt.
f. A Canadian oil company buys insurance from Lloyds of London to insure its oil rigs in the Beaufort Sea.
g. A Canadian company borrows from a US bank.
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Related Book For
Macroeconomics
ISBN: 978-0321675606
6th Canadian Edition
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
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