The balancing item appears on the balance of payments to:
A) account for errors and omissions in the data
B) equate the trade and services accounts
C) account for changes in official reserves
D) balance the current account

Question

Quizplus · Accepted Answer

The balancing item in the balance of payments is used to account for errors and omissions in the data, ensuring that the sum of the accounts equals zero, as the balance of payments must always balance theoretically.

The Balancing Item Appears on the Balance of Payments To