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An American Buys a Japanese Car, Paying by Writing a Check

Question 50

Multiple Choice

An American buys a Japanese car, paying by writing a check on an account with a bank in New York. How would this be accounted for in the balance of payments?


A) current account, a Japanese good import
B) current account, a U.S. good import
C) financial account, a U.S. asset import
D) financial account, a U.S. asset export
E) a current account as a U.S. good import and a financial account, a U.S. asset export

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