Payments made to foreign firms arising from Canadians' purchases of foreign goods and services are shown in Canada's

Question

Quizplus · Accepted Answer

Purchases of foreign goods and services fall under the current account in the balance of payments (BOP) system, which tracks all transactions between a country and the rest of the world. The current account includes goods, services, income, and unilateral transfers. Hence, payments to foreign firms arising from Canadians' purchases of foreign goods and services are recorded in the current account.

Payments Made to Foreign Firms Arising from Canadians' Purchases of Foreign