A credit in the U.S.current account:

Question

Quizplus · Accepted Answer

In accounting terms, a credit in the current account indicates that the U.S. is receiving more income and inflows from foreign countries than it is paying out. This is typically offset by a debit in the capital account, which measures the flow of investments into and out of the country. Therefore, option C is the correct answer. Option A is incorrect because a credit in the current account actually means that the U.S. is exporting more goods and services than it is importing. Option B is incorrect because the capital account and the current account are separate and do not have to balance each other out. Option D is incorrect because the reserve account is not directly affected by changes in the current or capital accounts.

A Credit in the U.S.current Account