QUESTION 4 In the balance of payments, the statistical discrepancy or error term
ID: 1112912 • Letter: Q
Question
QUESTION 4 In the balance of payments, the statistical discrepancy or error term is used to: a. Obtain an accurate account of a balance-of-payments surplus. b. Obtain an accurate account of a balance-of-payments deficit O c. Ensure that imports equal the value of exports. O d. Ensure that the sum of all debits matches the sum of all credits. QUESTION5 A country's balance of payment can best be described as a. A country's international debt to the rest of the world. b. A country's international financial relationship with the rest of the world. Oc. Trade deficit. O d. Trade balance.Explanation / Answer
4.
D
The balance of payment always makes credit equal to the debit, hence statistical discrepancy or error term is used to compensate the figures required to make credit equal to debit.
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5.
B
The balance of payment shows a country’s trade with the rest of the world. It means that BOP reflects a financial relationship between a nation and the rest of the world.