Canadian export transactions create a monetary:
A)outflow from the Canadian economy and a negative payment in Canada's balance-of-payments accounts
B)outflow from the Canadian economy and a positive receipt in Canada's balance-of-payments accounts
C)inflow into the Canadian economy and a negative payment in Canada's balance-of-payments accounts
D)inflow into the Canadian economy and a positive receipt in Canada's balance-of-payments accounts
E)circular flow with no effect on the balance of payments

Question

Quizplus · Accepted Answer

When Canadian exports, it creates an inflow of foreign currency or payment from foreign entities, which results in a positive receipt in Canada's balance-of-payments accounts. Therefore, the correct option is D.

Canadian Export Transactions Create a Monetary