How are financial account balance, change in reserves and net errors and omissions used in the calculation of balance of payments? I am getting confused in question 3B.47
The change in reserves are part of the financial account balance. The sum of the current account, capital account, financial account and net errors and omissions items is zero. I hope that helps! Anna
Why is financial account balance calculated as negative of current account balance + reserves? Financial account is calculated as 3.3m then why is that not used to calculate financial account balance in the third part?
