Question

Use the following information to answer the questions below. Assume that the capital account is equal to zero.

Exports of goods and services	540
Primary income received	20
Secondary income received	380
Imports of goods and services	270
Primary income paid abroad	180
Secondary income paid	10
Net acquisition of financial assets	700
Net incurrence of liabilities	80
Net change in financial derivatives	100

What is the trade​ balance?

​(Enter your response as a whole​ number.)What is the current account​ balance? 

​ (Enter your response as a whole​ number.)What is the financial account​ balance?  

​(Enter your response as a whole​ number.)What is the statistical​ discrepancy?  

​(Enter your response as a whole​ number.)

Answer 1

Trade Balance= Export-Import= 540-270 =270

Current Account Balance = Trade balance+ Net primary income+ Net secondary income

Current Account Balance= (540-270)+(20-180)+(380-10)= 270-160+370= 480

Financial Account Balance= Net acquisition of financial assets- net incurrence of liabilities+ Net change in financial derivatives

Financial account balance= 700-80+100= 720

Statistical discrepancy= Financial account balance-(Current Account Balance + Capital account balance)

Statistical discrepancy= 720-(480+0)= 240