With respect to Canada's balance of payments,

Question

Quizplus · Accepted Answer

The balance of payments is a record of all economic transactions between a country and the rest of the world during a given period of time. It is composed of three main components: the current account, the capital account, and the official financing account. The current account tracks the flow of goods and services, while the capital account tracks the flow of capital. The official financing account records transactions between the government and other countries, such as loans or grants. The three components must balance each other out, meaning that the sum of all credits must equal the sum of all debits. Therefore, choice B is correct, as the current account balance plus the capital account balance must be zero.

With Respect to Canada's Balance of Payments