What would be the statistical discrepancy for a current account balance of -$85 billion and a capital account balance of $80 billion?

Question

Quizplus · Accepted Answer

The statistical discrepancy is the difference between the overall balance of payments and the sum of the current and capital account balances. Mathematically, it can be expressed as:
Statistical discrepancy = Overall balance of payments - (Current account balance + Capital account balance)
In this case, the overall balance of payments can be calculated as:
Overall balance of payments = Current account balance + Capital account balance + Financial account balance
Since we are not given the financial account balance, we cannot calculate the overall balance of payments. However, we can still find the statistical discrepancy by rearranging the equation:
Statistical discrepancy = Overall balance of payments - (Current account balance + Capital account balance)
= Financial account balance - $85 billion + $80 billion
= Financial account balance - $5 billion
Therefore, the statistical discrepancy is $5 billion.

What Would Be the Statistical Discrepancy for a Current Account