IN-CLASS EXERCISE #11Top of Form

1. How would the following transactions be categorized in the Canadian balance of payments accounts? (Circle correct answers for a) and b) below)
2. A French importer buys a case of BC wine for $500:
   1. a. Current Account or Financial Account?
   2. b. Balance of Payments Rise or Balance of Payments Fall?
3. A Canadian lives in Quebec and works for a French company. Her pay is sent to her from Paris.
   1. a. Current Account or Financial Account?
   2. b. Balance of Payments Rise or Balance of Payments Fall?
4. A Canadian buys a bond from a Japanese company for $10,000.
   1. a. Current Account or Financial Account?
   2. b. Balance of Payments Rise or Balance of Payments Fall?
5. A Canadian charity sends $100,000 to Africa to help local residents buy food after a harvest shortfall.
   1. a. Current Account or Financial Account?
   2. b. Balance of Payments Rise or Balance of Payments Fall?
6. Consider the exchange rates for the trading days of 2019 and 2020 shown in the accompanying table. Then indicate whether the CDN dollar appreciated or depreciated and whether the movement in the value of the CDN dollar made Canadian goods and services more or less attractive to consumers of each nation.

April 1, 2020	April 1, 2021	Appreciate or Depreciate CDN$ (A or D)	Canadian Goods/Services More or Less Attractive to foreigners (M or L)
CDN$1.31 to buy 1 British pound sterling	CDN$1.24 to buy 1 British pound sterling
30.81 Taiwan dollars to buy CDN$1	30.29 Taiwan dollars to buy CDN$1
US$0.75 to buy 1 Canadian dollar	US$0.70 to buy 1 Canadian dollar
111.23 Japanese yen to buy US$1	107.22 Japanese yen to buy US$1
CDN $1.12 to buy 1 euro	CDN$1.09 to buy 1 euro