In the balance of payments,the statistical discrepancy is used to:
A)Ensure that the sum of all debits matches the sum of all credits
B)Ensure that trade imports equal trade exports
C)Obtain an accurate account of the trade deficit
D)Obtain an accurate account of the balance of payments deficit

Question

Quizplus · Accepted Answer

The statistical discrepancy in the balance of payments is used to ensure that the sum of all debits matches the sum of all credits. It represents the difference between the recorded credits and debits that arise due to errors in the data collection and reporting process. The statistical discrepancy is usually small, and its purpose is to ensure that the balance of payments equation remains in balance.

In the Balance of Payments,the Statistical Discrepancy Is Used To