For each of the transactions below indicate which of the Canadian balance of payments account is affected and whether the account balance rises or
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Question

For each of the transactions below indicate which of the Canadian balance of payments account is affected and

whether the account balance rises or falls

(i) Bank of Canada sells foreign exchange 

(ii) (ii) Canadian family pays for a vacation in the US 

(iii) (iii) US citizen buys Canadian government bonds

Top Answer

1. When bank of Canada sells foreign exchangeit affects the capital account of the balance of... View the full answer

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