The purchase of foreign assets by Canadians is,for Canada,considered a capital

Question

Quizplus · Accepted Answer

The purchase of foreign assets is considered a capital outflow, meaning that Canadian money is leaving the country. This is recorded as a debit on the capital account, which tracks international capital movements. Option A is incorrect because the current account records transactions in goods and services, not capital flows. Options C and D are incorrect because they describe inflows, which is the opposite of what is happening in this scenario. Option E is incorrect because it suggests that the transaction is recorded as a debit on the current account, which again is incorrect because that account tracks trade in goods and services.

The Purchase of Foreign Assets by Canadians Is,for Canada,considered a Capital