Suppose the current account balance in Warzoa is $90 billion and the capital account balance is −$97 billion. This implies that there is a statistical discrepancy of:

Question

Quizplus · Accepted Answer

The balance of payments is presented in the form of a double-entry accounting system, which must balance, meaning that the current account balance plus the capital account balance should be zero.

Therefore, we have:

Current Account + Capital Account = 0

$90 billion + (-$97 billion) = -$7 billion

So, there is a statistical discrepancy of $7 billion, which is the amount needed to balance the accounts.

Hence, the correct answer is A, $7 billion.

Suppose the Current Account Balance in Warzoa Is $90 Billion