Chapter 14

Question 1

Which of the following would call for a monetary inflow into the Canadian economy?

Answer 1

he sale of insurance by Canadian firms to Brazilian shippers

Question 2

Canadian export transactions create a monetary:

Answer 2

inflow into the Canadian economy and a positive receipt in Canada’s balance-of-payments accounts

Question 3

Canadian import transactions create a monetary:

Answer 3

outflow from the Canadian economy and a negative payment in Canada’s balance-of-payments accounts

Question 4

Which of the following creates a negative payment in Italy’s balance-of-payments accounts?

Answer 4

an Italian company buys software from a Canadian business

Question 5

Which of the following leads to a positive receipt in Canada’s balance-of-payments accounts?

Answer 5

new export sales are made by Canadian telecommunications companies