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If the Government of Canada Were to Sell Some of Its

Question 39

Multiple Choice

If the Government of Canada were to sell some of its foreign- exchange reserves to a foreign government, the transaction would


A) enter as a credit in the current account.
B) represent the sale of an asset, and thus enter as a credit item in the official financing account.
C) enters as a credit in the capital- service account.
D) represent the purchase of an asset from abroad, and thus enter as a debit item in the official financing account.
E) enter as a debit in the capital account.

Correct Answer:

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