(Table) For the balance of payments to be in balance, the
A) capital account must be $600 billion.
B) statistical discrepancy must be $100 billion.
C) statistical discrepancy must be $50 billion.
D) capital account must be $650 billion.

Question

(Table) For the balance of payments to be in balance, the 
A) capital account must be $600 billion. 
B) statistical discrepancy must be $100 billion. 
C) statistical discrepancy must be $50 billion. 
D) capital account must be $650 billion.

Quizplus · Accepted Answer

In a balance of payments, the current account and capital account should sum up to zero. However, due to discrepancies in data collection, a statistical discrepancy account is used to ensure that the balance of payments equation is true. Therefore, the correct answer is that the statistical discrepancy must be $50 billion, regardless of the value of the capital account.

(Table) for the Balance of Payments to Be in Balance