MGEA06H3 Chapter : Week 11 chapter notes
3 Dec 2010
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MGEA06H3 Full Course Notes
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Chapter 35 exchange rates and the balance of payments notes. N canadian imports of goods and services require a payment to foreigners and thus are entered as debit items on the trade account. N canadian exports of goods and services require a receipt to canada and thus are recorded as credit items. N capital-service account in the balance of payments, this account records the payments and receipts that represent income on assets (such as interest and dividends) N capital account the part of the balance of payments accounts that records payments and receipts arising from the import and export of long-term and short-term financial capital. N purchasing foreign asset requires payment from canadians to foreigners, it is entered as debit item in canadian capital account. N note when canadians purchase foreign assets, financial capital is leaving canada and going abroad, and so called capital outflow.
