Question

Table 9.2 International Transactions Account
Goods imports	250
Goods exports	200
Services imports	50
Services exports	175
Net unilateral transfers	-25
Investment income received	100
Investment income paid	-50
Capital account	-25
Net change in U.S. assets abroad	100
Net change in foreign assets in the U.S.	-250
Net change in financial derivatives	-25
Statistical discrepancy

Based on Table 9.2, this country has a statistical discrepancy of

100

50

0

-100

-200

Answer 1

Current account balance is the sum of balance of payments on goods and services and net international transfer payments and factor income

CA = (200 - 250) + (175 - 50) + (-25) + (100 - 50) = 100

Financial account balance is equal to the difference between the amount of sale of assets to foreigners and its purchases of assets from them

FA = (100 - 250) - 25 = -175

Capital account = -25

Statistical discrepancy = CA + FA + Ca = 100 - 175 - 25 = -100

Hence, Statistical discrepancy is -100.