When Canada sends money to Syria to help refugees from the civil war, in what account is this transaction recorded?
A)the financial account
B)the capital account
C)the current account
D)the foreign exchange account
E)the balance of trade account

Question

Quizplus · Accepted Answer

The current account is the part of the balance of payments that records transactions in goods, services, and income between residents of a country and the rest of the world. Sending money to Syria to help refugees would fall under the category of a humanitarian service, which would be recorded on the current account. The financial account records capital flows, such as investments, while the capital account records transfers of capital assets between countries. The foreign exchange account and the balance of trade account are not official components of the balance of payments.

When Canada Sends Money to Syria to Help Refugees from the Civil