Consider the following entries into Canada’s

Current Account: 30.7

Capital Account: 5.3

Financial Account (excluding official international reserves): -24.9 Statistical Discrepancy: -5.5

1. What happened to Canada’s net foreign assets in 2010?

The current account surplus of $30.7 billion tells us that Canada’s net foreign assets increased by $30.7 billion in 2010.

1. What was Canada’s balance of payments in 2010?

1. Assume that foreign central banks neither buy nor sell Canadian assets. How did the Canadian central bank’s foreign reserves change in 2010?

Canada’s Central bank had a net increase of $5.6 billion in its international reserves in the year. (Canada was a net buyer of international reserves.)