In the balance of payments,the statistical discrepancy is used to:
A) Ensure that the sum of all debits matches the sum of all credits
B) Ensure that trade imports equal the value of trade exports
C) Obtain an accurate account of a balance-of-payments deficit
D) Obtain an accurate account of a balance-of-payments surplus

Question

Quizplus · Accepted Answer

The statistical discrepancy is used to ensure that the sum of all debits (outflows of funds) in the balance of payments is equal to the sum of all credits (inflows of funds). It is basically a balancing item that accounts for any errors or omissions in the measurement of international transactions. Therefore, option A is the correct answer. Options B, C, and D are not accurate because the statistical discrepancy is not used for these purposes.

In the Balance of Payments,the Statistical Discrepancy Is Used To