Martin, a Canadian Citizen, Uses Some Previously Obtained Lithuanian Currency

Multiple Choice

Martin, a Canadian citizen, uses some previously obtained Lithuanian currency (litas) to purchase a bond issued by a Lithuanian company. How does this transaction affect Canadian net capital outflow?

A) It increases Canadian net capital outflow by more than the value of the bond.
B) It increases Canadian net capital outflow by the value of the bond.
C) It does not change Canadian net capital outflow.
D) It decreases Canadian net capital outflow.