If a U.S.company imports 10 Toyotas from Japan at $15,000 each,and the Japanese company buys airline tickets on a U.S.airline with the money,how does this affect the U.S.balance of payments accounts?
A)debit: merchandise trade; credit:capital and financial account
B)debit: capital and financial account; credit: merchandise trade
C)debit: merchandise trade; credit: services
D)debit: services; credit: merchandise trade

Question

Quizplus · Accepted Answer

The import of Toyotas is recorded as a debit in the merchandise trade account, and the purchase of airline tickets by the Japanese company is recorded as a credit in the services account.

If a UScompany Imports 10 Toyotas from Japan at $15,000 Each,and the Each,and