debt and equity investment (1 Viewer)

[furryfish]

can somebody clarify this for me:-

what is debt investment and what is equity investment?

and in terms of the balance of payments, how is our financial account always a surplus in regards to debt and equity investment? from what the teacher rambles on about, i gather that we borrow money from overseas to offset the CAD, but how does this make it a 'surplus' if we have to borrow? just a bit confused about this. any help is appreciated

 

[pete_mate]

debt and equity should be common knowledge, aska businesss studies student or dictionary

yes, we do borrow money from overseas, that is why the capital and financial account is in surplus; more money is being invested here than we are investing overseas

dont think of deficit and surplus or as good or bad, just negative or positive