Balance of Payments-Disequilibrium in Balance of Payments (IEcoS (Economic Services) Economics Paper-2): Questions 1 - 1 of 1

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Question number: 1

» Balance of Payments » Disequilibrium in Balance of Payments

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Appeared in Year: 2016

Essay Question▾

Describe in Detail

Distinguish between autonomous and accommodating transactions. What role do the accommodating transactions play in the balance of payments?

Explanation

  • Autonomous transactions are those which occur in the current and capital accounts for business or profit motive independently of the BOP considerations.

    • All the transactions such as visible and invisible exports and imports, unilateral transfer receipts do affect country’s balance of payments but these are, in no way, caused by the consider

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