If the Canadian government were to purchase more foreign- exchange reserves, this transaction
A) represents the purchase of an asset from abroad, and thus enters as a debit item in the capital- service account.
B) enters as a credit in the current account.
C) represents the sale of an asset, and thus enters as a credit item in the official financing account.
D) enters as a credit in the capital account.
E) represents the purchase of an asset from abroad, and thus enters as a debit item in the official financing account.
Correct Answer:
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