A friend claims that Canada is a net international debtor.The best way of testing this claim is to
A)see whether Canadian foreign liabilities exceeded Canadian foreign income.
B)see whether Canadian receipts from foreign assets exceeded Canadian payments to foreign owners of Canadian assets.
C)see whether Canadian official reserve assets were positive or negative.
D)see whether Canada ran a balance of payments surplus or deficit last year.

Question

Quizplus · Accepted Answer

To determine whether Canada is a net international debtor, we need to compare the receipts from Canadian-owned international assets to the payments to foreign owners of Canadian assets. If the receipts exceed the payments, then Canada is a net international creditor; if the payments exceed the receipts, then Canada is a net international debtor. Therefore, choice B is the best option to test the claim.

A Friend Claims That Canada Is a Net International Debtor