Other things equal,if foreign holdings of Canadian dollars decrease,

Question

Quizplus · Accepted Answer

Foreign holdings of Canadian dollars are a component of the financial account in the Canadian balance of payments. If these holdings decrease, it means that there is less demand for Canadian assets and therefore a decrease in the balance on the Canadian financial account. The current account and capital account are not directly affected by this change in foreign exchange holdings.

Other Things Equal,if Foreign Holdings of Canadian Dollars Decrease