$$\begin{array} { l c }
\text { Variables } & \text { (billions of dollars) } \
\hline \text { Imports of goods and services } & 1,400 \
\text { Exports of goods and services } & 1,600 \
\text { Net interest } & 0 \
\text { Net transfers } & 0 \
\text { Foreign investment in the United } & \
\text { States } & 480 \
\text { U.S. investment abroad } & 700 \
\hline
\end{array}$$
The table has some of the U.S.balance of payments account.
-If there is no statistical discrepancy, the sum of all three balance of payments accounts equals ________.

Question

$$\begin{array} { l c } 
\text { Variables } & \text { (billions of dollars) } \
\hline \text { Imports of goods and services } & 1,400 \
\text { Exports of goods and services } & 1,600 \
\text { Net interest } & 0 \
\text { Net transfers } & 0 \
\text { Foreign investment in the United } & \
\text { States } & 480 \
\text { U.S. investment abroad } & 700 \
\hline
\end{array}$$ 
The table has some of the U.S.balance of payments account.
-If there is no statistical discrepancy, the sum of all three balance of payments accounts equals ________.

Quizplus · Accepted Answer

According to the balance of payments accounting identity, the sum of the current account, capital account, and financial account should be zero if there is no statistical discrepancy. In this scenario, the current account balance (exports - imports) is +$200 billion and the financial account balance (U.S. investment abroad - foreign investment in the United States) is -$220 billion. Therefore, the sum of the three accounts should be zero, which means there is no statistical discrepancy.

The Table Has Some of the U