O ng.cengage.com C B Grades - S21-Macroeco... Course Hero Cengage Learning MindTap - Cengage Lea.. 6 . Effects of a tariff Su. C Assume The Following... G 6 . Effects of a tariff Su.. CENGAGE | MINDTAP Q Search this course ? .Sarthak v Assignment 2 X 10 . Current, financial, and capital accounts Consider hypothetical balance-of-payments data for Canada presented in the following table. A-Z O Complete the following table by selecting the correct value for each missing entry. Balance of Payments (Billions of dollars) Current Accounts Canadian merchandise exports +65 Canadian merchandise imports -76 Merchandise trade balance Canadian service exports +70 bongo Canadian service imports Services balance +45 Goods and services balance +34 Net investment income from abroad -1 Net unilateral transfers -7 Current account balance Financial Accounts Change in Canadian-owned assets abroad -40 O ng.cengage.com C B Grades - S21-Macroeco... Course Hero Cengage Learning MindTap - Cengage Lea.. 6 . Effects of a tariff Su. C Assume The Following... G 6 . Effects of a tariff Su.. CENGAGE | MINDTAP Q Search this course ? .Sarthak v Assignment 2 X Financial Accounts Change in Canadian-owned assets abroad -40 Change in foreign-owned assets in Canada + 50 Financial account balance A-Z Statistical discrepancy -36 Net balance 0 Suppose an Argentine citizen gives money to his brother in Canada. 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. bongo 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 Grade It Now Save & Continue Continue without saving