Regarding the statistical discrepancy in the balance-of-payments accounts,
A)there is some evidence that financial transactions may be mainly responsible for the discrepancy.
B)the sum of the balance on the capital account and the statistical discrepancy is very close to the balance of the current account in magnitude.
C)it tends to be positive one year and negative in others,so it's safe to ignore it.
D)there is some evidence that financial transactions may be mainly responsible for the discrepancy,and the sum of the balance on the capital account and the statistical discrepancy is very close to the balance of the current account in magnitude.

Question

Quizplus · Accepted Answer

The statement in option D considers both pieces of evidence regarding the statistical discrepancy in the balance-of-payments accounts. Financial transactions may be a likely cause of the discrepancy, and the sum of the balance on the capital account and the statistical discrepancy usually matches the balance of the current account, so both should be taken into account. Option A only considers one of these pieces of evidence, while option C suggests ignoring the discrepancy, which may not be wise given the potential impact on accurate accounting of a country's international transactions.

Regarding the Statistical Discrepancy in the Balance-Of-Payments Accounts