Consider the components of Canada's balance of payments accounts.The purchase of Canadian assets by foreigners is,for Canada,considered a capital ________ and is recorded as ________.

Question

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The purchase of Canadian assets by foreigners is considered a capital inflow for Canada and is recorded as a credit on the capital account. This is because the capital account records transactions that involve the exchange of assets between residents and non-residents, and an inflow of foreign investment represents an increase in Canada's assets.

Consider the Components of Canada's Balance of Payments Accounts