When a Canadian buys a Swedish financial asset, which of the following accounts is directly affected?

Question

Quizplus · Accepted Answer

When a Canadian buys a Swedish financial asset, it involves a transaction in the financial market which affects the financial account balance of Canada. The financial account records the inflow and outflow of all investments made by Canadians in foreign countries and by foreigners in Canada. Hence, Option C is the correct choice. Option A and B are both related to the trade accounts and Option D refers to the overall balance of all accounts combined.

When a Canadian Buys a Swedish Financial Asset, Which of the Following