$\begin{array}{|l|l|}
\hline \text { Item } & \text { Billions of dollars } \
\hline \begin{array}{l}
\text { Imports of goods and } \
\text { services }
\end{array} & 750 \\hline \begin{array}{l}
\text { Exports of goods and } \
\text { services }
\end{array} & 1,000 \\hline \text { Net interest income } & -50 \
\hline \text { Net transfers } & -50 \
\hline \text { US. investment abroad } & -350 \\hline \begin{array}{l}
\text { For eign investment in } \
\text { the United States}
\end{array} & 200 \
\hline
\end{array}$
-The data in the table above are the U.S. balance of payments. If there is no statistical discrepancy, what is the balance in the official settlements account?

Question

Quizplus · Accepted Answer

The official settlements account is the sum of the current account and the capital and financial account. The current account is the sum of the trade balance (exports minus imports), net interest income, and net transfers. The capital and financial account is the sum of US investment abroad and foreign investment in the United States. In this case, the current account is $1,000 - $750 - $50 - $50 = $150 billion. The capital and financial account is -$350 + $200 = -$150 billion. Therefore, the official settlements account is $150 billion - $150 billion = $0.

-The Data in the Table Above Are the U