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  3. 12th Class
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12th Class Economics Solved Paper - Economics 2014 Outside Delhi Set-I

  • question_answer
    Distinguish between 'autonomous' and 'accommodating' Balance of Payments transactions.

    Answer:

    Autonomous Transactions Accommodating Transactions
    Autonomous transactions refer to those international economic transaction that are undertaken with sole motive of earning profit. Accommodating transactions refer to those international economic transactions that are undertaken to correct the disequilibrium in the autonomous items.
    Autonomous transactions are classified ?above the line items? in BOP. Accommodating items are classified ?below the line items? in BOP.
    Such transactions are independent of the BOP status of a country. Such transactions depend on the BOP status of a country as they are compensating short-term capital transactions that are undertaken to correct the disequilibrium in the autonomous items.


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