If Canadian purchases of foreign assets were $100 million, Canadian loans to foreigners were $50 million, foreign purchases of Canadian assets were $75 million, and foreign loans to Canadians were $35 million, then the capital account balance is equal to

Question

Quizplus · Accepted Answer

The capital account balance is equal to the sum of Canadian purchases of foreign assets and foreign loans to Canadians minus the sum of foreign purchases of Canadian assets and Canadian loans to foreigners. 
Thus, capital account balance = (100-35) - (75-50) = 65 - 25 = -40 million 
Therefore, the correct answer is D, - $40 million.

If Canadian Purchases of Foreign Assets Were $100 Million, Canadian