If the balance of payments on financial account is $25, the balance of payments on goods and services is -$20, and the statistical discrepancy in the financial account is $2, then the sum of net international transfer payments and net international factor income is:

Question

Quizplus · Accepted Answer

The sum of net international transfer payments and net international factor income is equal to the statistical discrepancy in the financial account minus the balance of payments on goods and services. In this case, the statistical discrepancy in the financial account is $2, the balance of payments on goods and services is -$20, and the balance of payments on financial account is $25. Therefore, the sum of net international transfer payments and net international factor income is $2 - (-$20) = $22.

If the Balance of Payments on Financial Account Is $25