If a U.S.firm borrows from an American bank and then converts that money to euros to exchange for French wine,it will be accounted for as:

Question

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When a U.S. firm borrows from an American bank and then converts the money to euros to exchange for French wine, it is considered an import of goods and services, which are reflected in the current account of the balance of payments. As such, this transaction will be accounted for as a subtraction from the U.S. current account.

If a USFirm Borrows from an American Bank and Then Converts That