Question

question 7 (1 point) in a recent report, canadas capital account recorded receipts of $520 million and payments of $480 million. based on this information, what was canadas capital account balance (ka) for that period? $40 million deficit $40 million surplus $480 million deficit $520 million surplus

Explanation:

Step1: Recall Capital Account Balance Formula

The capital account (KA) balance is calculated as \( \text{KA Balance} = \text{Receipts} - \text{Payments} \).

Step2: Substitute Values

Given receipts = $520 million and payments = $480 million. Substitute into the formula: \( \text{KA Balance} = 520 - 480 \).

Step3: Calculate the Result

\( 520 - 480 = 40 \) (in millions). Since receipts are greater than payments, it's a surplus.

Answer:

\$40 million surplus