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Q1     Canada's balance of payments account are the current account, capital and financial account, and official...

Q1     Canada's balance of payments account are the

current account, capital and financial account, and official settlements account.

capital and financial account, current account, and merchandise trade account.

capital and financial account, official settlements account, and merchandise trade account.

official settlements account, current account, and net interest account.

Q2     If the exchange rate is 80 U.S. cents per Canadian dollar, then

the Canadian dollar will appreciate.

one U.S. dollar will buy 0.80 Canadian dollars.

the U.S. dollar is more expensive than the Canadian dollar.

one U.S. dollar will buy 1.25 Canadian dollars.

Q 3   Which one of the following is a balance of payments account?

capital and financial account

foreign exchange account

trade account

tax account
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Homework Answers

Answer #1

Q1) a country's balance of payment account are current account, capital and financial account and official settlements account as per IMF's directives of keeping balance of payments.

Hence, Canada's Balance of payments account are current account, capital and financial account, and official settlements account.

Therefore, First Option is correct.

Q2)Exchnage Rate: 80 US cents= 1 Canadian Dollar or 0.80 US dollar= 1 Canadian Dollar.

This exchange rate can also be written as

1US dollar= 1.25 Canadian Dollar

This means that one US dollar will buy 1.25 Canadian dollars.

Hence, fourth option is correct.

Q3) capital and financial account is the balance of payment account. Foreign exchange account or trade account or tax account is not the balance of payment account.

Hence, first option is correct.

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