Japanese current account surplus can best be attributed to

Question

Quizplus · Accepted Answer

The high rate of Japanese savings is the main reason behind the country's current account surplus. Japan has a cultural inclination towards saving which results in a higher savings rate compared to other countries. This leads to a surplus of funds that are invested in foreign countries, thereby generating significant income through interest and dividends. Additionally, Japanese households have a high degree of financial literacy and tend to invest their savings in various financial instruments, further contributing to the current account surplus.

Japanese Current Account Surplus Can Best Be Attributed to