The statistical discrepancy account:
A)accounts for services.
B)accounts for gifts to foreigners.
C)is included to ensure a balance between debits and credits in the capital account.
D)estimates transactions that were omitted from the official reporting process.
E)causes the net balance in the balance of payments to be negative.

Question

Quizplus · Accepted Answer

The statistical discrepancy account estimates transactions that were omitted from the official reporting process, thereby ensuring balance between debits and credits in the balance of payments. It is not related to accounting for services, gifts, or causing a negative net balance.

The Statistical Discrepancy Account