Which of the following is not included in the balance of the financial account of Canada?
A)a purchase of Airbus stock by Bombardier
B)a purchase of Potash Corporation of Saskatchewan stock by a firm in China
C)a purchase of Canadian manufacturing plant by Toyota
D)a purchase of a German brewery by the Canadian company, Moosehead
E)a purchase of German financial services by Scotia Bank

Question

Quizplus · Accepted Answer

The financial account of a country records transactions related to financial investments, such as stocks, bonds, and real estate. Therefore, a purchase of German financial services by Scotia Bank would be included in the balance of the financial account of Canada. All other choices involve foreign direct investment in physical assets, such as factories and breweries, which are recorded in the capital account of a country, not the financial account.

Which of the Following Is Not Included in the Balance