Prepare for the CSI Investment Funds in Canada exam with flashcards and multiple choice questions. Gain insights through hints and explanations for a successful exam experience!

Multiple Choice

The balance of payments comprises two separate accounts recording a country's international activities. Which two accounts are they?

The balance of payments is made up of two main sections that record a country’s international activity: the current account and the capital account. The current account tracks trade in goods and services, income from investments, and current transfers. The capital account records capital transfers and the acquisition or disposal of non-produced, non-financial assets, plus the transfer of ownership of fixed assets. In many frameworks a third part called the financial account covers changes in financial assets and liabilities, but the question focuses on the two primary accounts historically used to summarize international flows: current and capital. The other options mix in the financial account or refer to terms like balance of trade, which aren’t formal accounts themselves.

The balance of payments is made up of two main sections that record a country’s international activity: the current account and the capital account. The current account tracks trade in goods and services, income from investments, and current transfers. The capital account records capital transfers and the acquisition or disposal of non-produced, non-financial assets, plus the transfer of ownership of fixed assets. In many frameworks a third part called the financial account covers changes in financial assets and liabilities, but the question focuses on the two primary accounts historically used to summarize international flows: current and capital. The other options mix in the financial account or refer to terms like balance of trade, which aren’t formal accounts themselves.