he sale of American computers to the Spanish government shows up as a. A debit on the official reserves account b. A credit on the official reserves account c. A credit on the trade account d. A debit on the current account

Question

Business

Wu

11 January, 22:29

he sale of American computers to the Spanish government shows up as a. A debit on the official reserves account b. A credit on the official reserves account c. A credit on the trade account d. A debit on the current account

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Answers (2)

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Humberto Dougherty · Answer 1

The answer is option is C) A credit on the trade account.

Explanation:

A sale is a result of an effective demand which will reflect as a credit on the trade account.

The trade account is an account in which trade credit is spent and repaid. It represents one of the most valuable lines of credit to any business. Once payment for sales is received, when trade credit is given, a trade account is established.

Therefore, the sale of American computers to the Spanish government shows up as a credit on the trade account of the selling entity.

Fletcher Nolan · Answer 2

c. A credit on the trade account

Explanation:

The sale of American computers to the Spanish government shows up as a credit on the trade account.

The Americans were willing to sell the computers to the Spanish government without having to pay immediately but

allowing them to pay later.