Canadian import transactions create a monetary:
A)inflow into the Canadian economy and a negative payment in Canada's balance-of-payments accounts
B)inflow into the Canadian economy and a positive receipt in Canada's balance-of-payments accounts
C)outflow from the Canadian economy and a negative payment in Canada's balance-of-payments accounts
D)outflow from 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

Canadian import transactions involve paying for goods or services from another country, which means money flows out of the Canadian economy. This is recorded as a negative payment (debit) in Canada's balance-of-payments accounts because it represents a financial obligation to another country.

Canadian Import Transactions Create a Monetary