10 . Current, financial, and capital accounts

Consider hypothetical balance-of-payments data for Canada presented in the following table.

Complete the following table by selecting the correct value for each missing entry.

	Balance of Payments
(Billions of dollars)
Current Accounts
Canadian merchandise exports	+70
Canadian merchandise imports	-65
Merchandise trade balance
Canadian service exports	+60
Canadian service imports
Services balance			+5
Goods and services balance			+10
Net investment income from abroad	-2
Net unilateral transfers	-6
Current account balance
Financial Accounts
Change in Canadian-owned assets abroad	-41
Change in foreign-owned assets in Canada	+39
Financial account balance
Statistical discrepancy			0
Net balance			0

Suppose a Canadian citizen gives money to her nephew in Belgium. This would be entered as a _______ item under the ______ section of the Canadian current account. According to the table, Canada is running a trade ________ in goods and services.

The current account balance suggests that Canadian current account transactions (exports and imports of goods and services and inflows and outflows of investment income and transfers) created outpayments of foreign currencies from Canada that were_______ the inpayments of foreign currencies to Canada.

Any surplus or deficit in one account must be offset by deficits or surpluses in other balance-of-payments accounts. Because the current account is in ______ , the excess of foreign currency held by Canadians must either be loaned to foreigners or used to buy foreign stocks or bonds. All of these transactions are then recorded in the ________ account. Since any imbalance in one account automatically leads to an equal, but opposite, imbalance in the other, the balance of payments is always _____.