Consider the Components of Canada's Balance of Payments Accounts

Multiple Choice

Consider the components of Canada's balance of payments accounts.The purchase of foreign assets by Canadians is,for Canada,considered a capital ________ and is recorded as ________.

A) outflow; a debit on the current account
B) outflow; a debit on the capital account
C) inflow; a credit on the current account
D) inflow; a credit on the capital account
E) inflow; a debit on the capital account