In a freely floating exchange rate system,the sale of Japanese cars to the United States will be offset by which item on the US balance of payments?

Question

Quizplus · Accepted Answer

The sale of Japanese cars to the United States would result in a credit on the current account due to the export of goods. Additionally, it could lead to a credit on the capital account if the proceeds from the sales are invested in the US financial markets or assets.

In a Freely Floating Exchange Rate System,the Sale of Japanese