Part of Canadian savings may be counted as which of the following?
A)foreign direct investment
B)foreign portfolio investment
C)net capital outflow
D)net exports

Question

Quizplus · Accepted Answer

Canadian savings that are invested abroad represent a net capital outflow, as money is flowing out of the country. Foreign direct investment (A) and foreign portfolio investment (B) refer to investments made by Canadian entities in foreign countries, not the other way around. Net exports (D) refer to the difference between exports and imports of goods and services, and do not involve savings.

Part of Canadian Savings May Be Counted as Which of the Following