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 consideration of

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