Question

Suppose Canada had the following Balance of Payments accounts last year. What would its official Reserves Account Balance have been?

-160
Current Account
Capital & Financial Accounts
Balance of Payments
+154
A. 314
B. -6
C. +6
D. -314

Answer 1

The official Reserves Account Balance for Canada would have been -314.

Step-by-step explanation:

The official Reserves Account Balance for Canada can be calculated by subtracting the sum of the Current Account and Capital & Financial Accounts from the Balance of Payments. In this case, the Balance of Payments is +154 and the Current Account and Capital & Financial Accounts total to -160. So, the official Reserves Account Balance would be(-160) - (+154) = -314.