Current account balance + financial account balance + statistical discrepancy = zero.

Question

Quizplus · Accepted Answer

This is known as the "balance of payments identity" and holds true because every transaction recorded in the balance of payments must have an equal and opposite transaction to maintain the overall balance of payments. Therefore, the sum of the current account balance, financial account balance, and statistical discrepancy must equal zero.

Current Account Balance + Financial Account Balance + Statistical Discrepancy