If Canada exports $100 billion of goods and services and imports $150 billion of goods and services and there is no other factor income or transfers,the balance on the current account is:

Question

Quizplus · Accepted Answer

The current account balance represents the difference between a country's exports and imports of goods and services.

In this case, Canada's exports are valued at $100 billion and its imports at $150 billion, so its current account balance is:

$100 billion (exports) - $150 billion (imports) = -$50 billion

The negative sign indicates that Canada's imports exceed its exports, resulting in a trade deficit.

If Canada Exports $100 Billion of Goods and Services and Imports