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Given the​ following:

Current account balance ​(CA​) ​= 250
Financial account balance ​(FA​) ​= -250

What is the amount of statistical discrepancy in the balance of payments​ accounting?
Statistical discrepancy ​(SD​) ​=

User Bill Bell
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Final answer:

In balance of payments accounting, the current account balance (CA) and the financial account balance (FA) must sum to zero with statistical discrepancy (SD). With a CA of $250 billion and an FA of -$250 billion, the statistical discrepancy is $0 because their sum cancels out.

Step-by-step explanation:

The amount of statistical discrepancy in the balance of payments accounting can be determined by understanding how the balances for various accounts are related to each other. In balance of payments (BOP) accounting, the sum of the current account balance (CA), the financial account balance (FA), and the statistical discrepancy (SD) must be zero. It's a way to ensure that all international transactions are accounted for; in essence, the BOP should balance out.

In your question, the current account balance (CA) is $250 billion and the financial account balance (FA) is -$250 billion. This means that the statistical discrepancy (SD) must be equal to the opposite of their sum to achieve a zero balance in the BOP. Since CA + FA + SD = 0, we get 250 - 250 + SD = 0. Solving for SD, we find that SD must be 0.

Therefore, the amount of statistical discrepancy in the balance of payments accounting is $0. This means that the transactions recorded in the current and financial accounts completely offset each other with no discrepancies, resulting in a balanced BOP without the need for any statistical adjustment.

User Joham
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