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jekas [21]
3 years ago
9

If the balance on the current account is $346 billion and the balance on the financial account is -$204 billion, what is the bal

ance on the capital account, assuming no statistical discrepancy?
Business
1 answer:
Zina [86]3 years ago
6 0

Answer:

The balance on the capital account=-$142 billion

Explanation:

The formula for determining the balance on the capital account can be expressed as;

CU+FA+CA+SD=0

where;

CU=balance on the current account

FA=balance on the financial account

CA=balance on the capital account

SD=statistical discrepancy

In our case;

balance on the current account=$346 billion

balance on the financial account=-$204 billion

balance on the capital account=unknown=c

statistical discrepancy=0

replacing;

346+(-204)+c+0=0

142+c=0

c=-142

The balance on the capital account=-$142 billion

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