When a Canadian investor buys a bond issued in a foreign country,

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When a Canadian investor buys a bond issued in a foreign country, it is recorded as a financial transaction on the balance of payments. Therefore, the balance on the financial account decreases. The capital account refers to non-financial transactions such as transfers of ownership of fixed assets, while the current account includes transactions related to goods, services, and income. The balance of trade refers specifically to the difference between a country's exports and imports of goods, so it is not affected by the purchase of a bond. The statistical discrepancy measures errors and omissions in the balance of payments calculation, so it is unlikely to be affected by a single transaction.

When a Canadian Investor Buys a Bond Issued in a Foreign