If Canadian exports of goods and services were $40 billion, imports of goods and services were $35 billion, transfers by Canadians to foreigners were $2 billion and transfers from foreigners to Canadian citizens were $1 billion, then the current account balance would be

Question

Quizplus · Accepted Answer

The current account balance is calculated as follows:
Current Account Balance = Exports - Imports + Transfers from Foreigners - Transfers to Foreigners
Current Account Balance = $40 billion - $35 billion + $1 billion - $2 billion
Current Account Balance = $4 billion

Therefore, the correct answer is B) +$4 billion.

If Canadian Exports of Goods and Services Were $40 Billion