Question

Which one of the following is not included in the current account?

O the flow of interest payments to a Canadian holder of a German bond
O a foreigner's purchase of Canadian corporate shares
O a Canadian's purchase of a Korean-made car
O a French tourist's spending while visiting Canada​

Answer 1

O a French tourist's spending while visiting Canada​

Step-by-step explanation:

A current account shows the balance between a country's exports and imports. In other words, a country's exports and imports are indicated in the country's current account. A positive balance indicates a country has more exports than imports.

Exports include all goods, services, capital, and earnings sent outside the borders of a country. Imports are what is received from other countries. The current account considers goods, services, interest, and capital moving in and out of the borders. The French tourist is spending in Canada. The items being bought are not imports.