Martin,a Canadian citizen,uses some previously obtained HYPERLINK "http: / / en.wikipedia.org / wiki / Lithuanian_litas" Lithuanian currency (litas)to purchase a bond issued by a HYPERLINK "http: / / en.wikipedia.org / wiki / Lithuanian_litas" Lithuanian company.How does this transaction affect Canadian net capital outflow?
A) It increases Canadian net capital outflow by more than the value of the bond.
B) It increases Canadian net capital outflow by the value of the bond.
C) It does not change Canadian net capital outflow.
D) It decreases Canadian net capital outflow.

Question

Quizplus · Accepted Answer

Since Martin is using previously obtained Lithuanian currency to purchase the bond, there is no new outflow of Canadian capital. Therefore, Canadian net capital outflow does not change.

Martin,a Canadian Citizen,uses Some Previously Obtained HYPERLINK "Http: