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

question 84

Multiple Choice

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

• A)outflow and is recorded as a debit on the current account.
• B)outflow and is recorded as a debit on the capital account.
• C)inflow and is recorded as a credit on the current account.
• D)inflow and is recorded as a credit on the capital account.
• E)inflow and is recorded as a debit on the capital account.

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Definitions:

Euro

The Euro is the official currency of 19 out of the 27 European Union countries, known collectively as the Eurozone.

U.S. Dollars

The official currency of the United States, used as a standard monetary unit for international transactions and reserves.

Ad Valorem Duty

A type of tax calculated based on the value of the goods, services, or property.

German Firm

A business or company that is registered, headquartered, or primarily operates within Germany.