The Chinese and Russian governments have decided to buy all new issues of Government of Canada bonds.

Assume the Canadian government is following a flexible exchange rate policy.

Which Balance of Payments account will this event be recorded in

A.Current Account

B.Capital Account

C.Official International Reserves

This event will cause:

An increase in ____________________ Canadian dollars

A.demand for

B.supply of

This event will cause the Canadian exchange rate to

A.depreciate

B.not change

C.appreciate