A Brazilian bank buys shares of stock in Bombardier,a Canadian high-tech company.In the Canadian balance of payments,this transaction causes the balance on the _____ account to _____.

Question

Quizplus · Accepted Answer

The transaction involves the purchase of shares of stock in a Canadian company by a Brazilian bank, which is a financial transaction. Therefore, it affects the financial account of the Canadian balance of payments. As the Brazilian bank is buying shares, it is increasing its financial holdings in Canada, which results in an increase in the balance on the financial account. Hence, option D is correct.

A Brazilian Bank Buys Shares of Stock in Bombardier,a Canadian