If a Canadian company buys steel from Russia, then that purchase will be recorded in the:
A) Canadian current account.
B) Canadian capital account.
C) Canadian official reserves account.
D) Russian capital account.

Question

Quizplus · Accepted Answer

This purchase is recorded in the Canadian current account because it involves the import of goods, affecting the trade balance, which is a component of the current account.

If a Canadian Company Buys Steel from Russia, Then That