How would the following transactions be categorized in the Canadian balance of payments accounts? Would they be

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How would the following transactions be categorized in the Canadian balance of payments accounts? Would they be entered in the current account (as a payment to or from a foreigner) or the financial account (as a sale of assets to or purchase of assets from a foreigner)? How will the balance of payments on the current and financial accounts change?

a. A French importer buys a case of British Columbia ice wine for $500.

b. A Canadian who works for a French company deposits her paycheck, drawn on a Paris bank, into her Toronto bank.

c. A Canadian buys a bond from a Japanese company for $10,000.

d. A Canadian charity sends $100,000 to Africa to help local residents buy food after a harvest shortfall.

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Macroeconomics

ISBN: 978-1319120054

3rd Canadian edition

Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson

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