Question

Current Account Credits Debits     Exports         Total Exports $12 billion dollars     Imports         Total...

Current Account

Credits

Debits

    Exports

        Total Exports

$12 billion dollars

    Imports

        Total Imports

-$14 billion dollars

    Unilateral Transfer

$0

$0

    Balance on Current Account

?

?

Capital Account

    Balance on Capital Account

$0

$0

Financial Account

    Direct Investment

$2.4 billion dollars

-$3.4 billion dollars

    Portfolio Investment

        Total Portfolio Investment

$24 billion dollars

-$20 billion dollars

    Other Investment

$4 billion dollars

-$2 billion dollars

    Balance on Financial Account

$5 billion dollars

Statistical discrepancy

?

?

The Statistical Discrepancy is __________. (show all work)

$3 billion dollars in credits

$3 billion dollars in debits

-$3 billion dollars in credits

-$3 billion dollars in debits

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Homework Answers

Answer #1

Net Balance = Balance on Current Account + Balance on Capital Account + Balance on Financial Account

= ($12 billion - $14 billion) + $0 + $5 billion

= $3 billion.

So, Statistical discrepancies are official adjustment factor in the National Income and Product Accounts that ensures equality between the income and expenditures approaches to measuring gross domestic product., which means, they have to have balance of $3 Billion in debits.

Correct Option is "D" , i.e., -$3 billion dollars in debits

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