42. According to the balance of payments identity, which of the following statement must be correct:...

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42. According to the balance of payments identity, which of the following statement must be correct: (CA=current account, KA=

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Answer 1

Answer #1

E is the correct option

Reason

The balance of payment identity in theory is that but CA+KA+FA=0

But, in reality, due to statistical discrepancy, it is very close to zero, so we need to add SD to it to get

CA+KA+FA+SD=0

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Answer 2

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