Question

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

Answer 1

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

Step-by-step 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.

Answer 2

c. A credit on the trade account

Step-by-step 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.