In the balance of payments, net errors and omissions:
a. Is like a balancing item. It makes the balance of payments equal zero.
b. Is estimated by the Commerce Departments of countries and added (or subtracted) only when the government has authority from the International Monetary Fund to do so.
c. Is positive when the current account is negative and negative when the current account is positive.
d. Is positive when the financial account is negative and negative when the financial account is positive.
Question 2 - In the balance of payments, net errors and omissions:
a. Must be zero.
b. Is like a balancing item. It makes the balance of payments equal zero.
c. Is not a part of the balance of payments because governments don't make errors, and they don't omit transactions from the balance of payments.
d. None of the above.
Question 3 - Which of the following is true?
a. The balance of payments is like a sources and uses of funds statement.
b. The balance of payments includes only transactions for which there are financial payments.
c. The balance of payments is calculated at a point in time (e.g., amounts at year's end).
d. None of the above is correct.
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