Autonomous and accommodating transaction
(a) Balance of trade (b) Balance of transactions (c) Budget (d) Balance of payments Answer. If India exports goods worth Rs 20 crore and imports goods worth Rs 30 crore, it will have a———————-. Which one of the following items is an intangible item in balance of payments statement? Export and import of machines are considered as export and import of goods, that comes under current account of BOP account. Foreign exchange received on account of export of sugar will be X’ecorded in current account. Unilateral transfers received from abroad will be recorded as a credit item of BOP on current account. Question 1.——————–is a systematic record of all the economic transactions between one country and rest of the world. It is so because export of sugar is a export of goods which is a component of current account. Accommodating items are also known as ‘above the line’ items. (Autonomous items are also known as ‘above the line’ items.) Question 7. A deficit in a current account indicates that the inflow of foreign currencies from exports of goods and services is less than the outflow of foreign currencies on account of import of goods and services. Differentiate between Balance of Trade and Current Account Balance. If inflation is higher in country A than in country B, and the exchange rate between the two countries is fixed. Visible items include material goods [such as sugar, cloth, machines etc.] which can be seen or touched, counted, measured and weighted and which are duly recorded at the custom barriers. Distinguish between current account and capital account of BOP account.[AI 2004, 06C] Answer. Distinguish between balance of trade and balance of payment.
Borrowing by the government is a accommodating transaction and it is recorded in the capital account only. Autonomous transactions take place in current account only. Note: As per CBSE guidelines, no marks will be given if reason to the answer is not explained.
Autonomous transactions take place in both current and capital accounts.