Asked by
INGRID JOHANA VARGAS MONTEALEGRE
on Nov 12, 2024Verified
In order for the balance of payments to balance,the:
A) current account balance must equal the capital account balance.
B) sum of the current account balance,the capital account balance,the net flow of international reserves,and the statistical discrepancy must have a negative value.
C) sum of the current account balance,the capital account balance,the net flow of international reserves,and the statistical discrepancy must have a positive value.
D) sum of the current account balance,the capital account balance,the net flow of international reserves,and the statistical discrepancy must equal zero.
E) the sum of the current account balance,the capital account balance,and the net flow of international reserves must be greater than the statistical discrepancy.
Capital Account Balance
A part of a country's balance of payments that records all transactions involving the purchase or sale of assets.
Current Account Balance
The current account balance is a country's trade balance plus net income and direct payments between it and other countries, indicating a nation's foreign trade and financial status.
Statistical Discrepancy
The difference between the sum of the components of GDP calculated on the income side and the expenditure side, due to measurement errors and data omissions.
- Explain the balance of payments and its components.
Verified Answer
HB
Learning Objectives
- Explain the balance of payments and its components.