In 2016,Canada:

Question

In 2016,Canada:

Quizplus · Accepted Answer

Canada had a current account deficit in 2016, meaning that its imports exceeded its exports and it needed to borrow from other countries to pay for its imports.

Answer: B 
 Canada did not operate on a fixed exchange rate in 2016. Instead, it had a floating exchange rate system in which the value of the Canadian dollar was determined by market forces.

Answer: C 
 Canada did not have a financial account deficit in 2016. In fact, it had a surplus in its financial account, which reflects investment flows into and out of the country.

Answer: D 
 Canada did not operate on the gold standard in 2016. The country abandoned the gold standard in 1931 and has since used a variety of exchange rate regimes.