If a resident of Japan purchases a ticket from American Airlines,paying by a personal check,which entries result in the balance-of-payments accounts of Japan or the United States?
A) a debit in the U.S.service account
B) a credit in the U.S.service account
C) a credit in Japan's unilateral transfers account
D) a debit in Japan's unilateral transfers account

Question

Quizplus · Accepted Answer

When a resident of Japan purchases a ticket from an American company and pays by personal check, it is considered a service transaction. Since the payment is made by a foreign customer to an American service provider, it results in a credit in the U.S. service account.

If a Resident of Japan Purchases a Ticket from American