1. Use the information in the following table to solve for the value of the stat

Question

1. Use the information in the following table to solve for the value of the statistical discrepancy and organize/prepare the Balance of Payments Account (properly organized and formatted). Assume that the balance on the Capital Account is zero $1,181 $856 -$256 Increase in foreign holdings of assets in the U.S Exports of goods Imports of services Statistical discrepancy Net transfers Exports of services Income received on investments Imports of goods Increase in U.S. holdings of assets in foreign countries $1,040 Income payments on investments -$60 $325 $392 -$1,108 -$315

Explanation / Answer

The statistical discrepancy is the sum of current account and capital and financial account with the sign reserved.

Current account balance = -$166

Capital and financial account balance = $141

Statistical Discrepancy = -$166 + $144

Statistical discrepancy= -$25

Reversed the sign, it means statistical discrepancy would be $25.

(BALANCE OF PAYMENT STATEMENT)

Current Account (billions of dollars) Gross Exports (goods & services) (856 + 325) 1181 Gross Imports (goods & services) (-1108 -256) -1364 Net Income (392-315) 77 Net Current Transfers (-60) -60 Current account balances -166 Capital & Financial Account Capital Account 0 Increase in foreign holdings of assets in U.S 1181 Incresase in U.S holding of assets in foreign countries -1040 Capital & Financial account balances 141 Statistical Discrepancy 25 Balance of payments (current account + capital & financial account + statistical discrepancy) 0

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.