If the balance on the current account in Canada is $75 billion, which of the following is most likely to be true?
A)The balance on the financial account is negative.
B)The trade balance is negative.
C)Net foreign investment is negative.
D)The balance on the capital account is positive.
E)The balance of trade is negative.

Question

Quizplus · Accepted Answer

A positive current account balance typically indicates a surplus, meaning that the country is exporting more than it is importing. To balance this, the financial account, which records capital inflows and outflows, is likely to be negative, reflecting net capital outflows.

If the Balance on the Current Account in Canada Is