If the merchandise trade balance is -$15, net international transfer payments and net international factor income are $4, the balance of payments on goods and services is -$25, and the balance of payments on the financial account is $18, then the statistical discrepancy in the financial account is:

Question

Quizplus · Accepted Answer

The statistical discrepancy in the financial account can be calculated by ensuring that the sum of the balance of payments on goods and services, net international transfer payments, net international factor income, and the balance of payments on the financial account equals zero, as per the balance of payments accounting principle. Given the data: Balance of payments on goods and services = -$25, Net international transfer payments and net international factor income = $4, Balance of payments on the financial account = $18. The sum is -$25 + $4 + $18 = -$3. To balance the accounts, a statistical discrepancy of +$3 is needed.

If the Merchandise Trade Balance Is -$15, Net International Transfer