If a US resident were to visit Japan and spend $500 on food and shelter,what entries would be made into the US balance of payments?

Question

Quizplus · Accepted Answer

When a US resident spends $500 on food and shelter while visiting Japan, it is considered an outflow of US dollars from the US economy. This transaction is recorded in the US balance of payments under the travel services category as a debit of $500. Since the resident is not receiving any payment for the services they are consuming, there is no corresponding credit entry in any other category. The capital inflow category is not applicable in this case, as the resident is not making any investment or receiving any income abroad.

If a US Resident Were to Visit Japan and Spend