The balance of payments is the sum of which of the following?
A)Current account balance
B)Current account balance + financial account balance
C)Current account balance + financial account balance + statistical discrepancy
D)None of the above

Question

Quizplus · Accepted Answer

The balance of payments is the sum of all international transactions that occur between a country's residents and the rest of the world. It includes both the current account balance, which is the net balance of trade in goods and services, and the financial account balance, which is the net balance of capital flows. The statistical discrepancy is included to ensure that the balance of payments balances. Therefore, the correct answer is C, which includes all three components.

The Balance of Payments Is the Sum of Which of the Following