With respect to Canada's balance of payments,

Question

Quizplus · Accepted Answer

The balance of payments is a record of all financial transactions made between a country and the rest of the world over a specific period. The balance of payments is divided into three parts: the current account, the capital account, and the financial account. The current account reflects a country's trade in goods and services, while the capital account reflects movements of capital. The balance of payments must always balance, meaning total payments must equal total receipts. Therefore, choice D is correct. Choices A and E are incorrect because a deficit or surplus in the current account does not necessarily imply a corresponding deficit or surplus in the capital account. Choice B is incorrect because the current account balance can be positive, negative, or zero. Choice C is incorrect because the trade account is only one component of the current account and does not represent the entire balance of payments.

With Respect to Canada's Balance of Payments