If a Canadian Firm Buys Stereos from a Japanese Firm

Multiple Choice

If a Canadian firm buys stereos from a Japanese firm and the Japanese firm uses the dollars it gets to buy Canadian Treasury bonds,what items are recorded in the Canadian balance of payments accounts?

A) credit the trade account;credit the capital account
B) credit the trade account;debit the capital account
C) debit the trade account;debit the capital account
D) debit the trade account;credit the capital account