a-us-citizen-buys-a-60000-car-from-a-german-company-how-does-this-transaction-af

Question

A US citizen buys a $60,000 car from a German company. How does this transaction affect the balance of payments?

Accepted Answer

It increases the current account deficit by $$60,000 and increases the financial account surplus by 60$$,000.

Answer

It decreases the current account surplus by $$60,000 and decreases the financial account deficit by 60$$,000.

Answer

It has no effect on the balance of payments.

Answer

It increases the current account surplus by $$60,000 and decreases the financial account deficit by 60$$,000.

A US citizen buys a \$60,000 car from a German company. How does this transaction affect the balance of payments?