{"id":131739,"date":"2023-02-20T14:47:45","date_gmt":"2023-02-20T09:17:45","guid":{"rendered":"https:\/\/www.mapsofindia.com\/my-india\/?p=131739"},"modified":"2023-02-20T14:47:45","modified_gmt":"2023-02-20T09:17:45","slug":"distinguish-between-autonomous-and-accommodating-transactions-in-balance-of-payments-accounts","status":"publish","type":"post","link":"https:\/\/www.mapsofindia.com\/my-india\/education\/distinguish-between-autonomous-and-accommodating-transactions-in-balance-of-payments-accounts","title":{"rendered":"Distinguish between autonomous and accommodating transactions in Balance of Payments Accounts."},"content":{"rendered":"

Question 3:Distinguish between autonomous and accommodating transactions in Balance of Payments Accounts.<\/h2>\n

The correct answer is – The Balance of Payments (BoP) is a record of all economic transactions that take place between a country and the rest of the world over a specific period. The BoP is divided into two main categories of transactions: autonomous transactions and accommodating transactions.<\/h3>\n
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    Autonomous Transactions: Autonomous transactions are those transactions that take place on their own without any direct intervention by the government or central bank. They include:<\/h3>\n<\/li>\n<\/ol>\n
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      Trade in goods and services: These are transactions between residents and non-residents involving the exchange of goods and services. For example, exports and imports of goods and services.<\/h3>\n<\/li>\n
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      Investment income: These are transactions involving the receipt of income from investments made in other countries, such as dividends, interest, and profits.<\/h3>\n<\/li>\n
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      Unilateral transfers: These are transfers of wealth between residents and non-residents that are made without any expectation of a return. For example, foreign aid, grants, and gifts.<\/h3>\n<\/li>\n<\/ul>\n
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      1. \n

        Accommodating Transactions: Accommodating transactions are those transactions that take place in response to other transactions and are undertaken by the government or central bank to adjust the balance of payments. They include:<\/h3>\n<\/li>\n<\/ol>\n
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        • \n

          Official reserves: These are transactions that involve the buying and selling of foreign currencies by the central bank to maintain the stability of the domestic currency.<\/h3>\n<\/li>\n
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          Short-term capital flows: These are transactions that involve the movement of funds in and out of a country for short-term investments or speculation.<\/h3>\n<\/li>\n
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          Banking sector flows: These are transactions that involve the borrowing and lending of funds between domestic and foreign banks.<\/h3>\n<\/li>\n<\/ul>\n

          In summary, autonomous transactions are those that occur naturally as a result of trade and investment between countries, while accommodating transactions are undertaken by the government or central bank to manage the balance of payments.<\/h3>\n","protected":false},"excerpt":{"rendered":"

          Question 3:Distinguish between autonomous and accommodating transactions in Balance of Payments Accounts. The correct answer is – The Balance of Payments (BoP) is a record of all economic transactions that take place between a country and the rest of the world over a specific period. The BoP is divided into two main categories of transactions: […]<\/p>\n","protected":false},"author":21830,"featured_media":131656,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":{"0":"post-131739","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-education"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/131739","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/users\/21830"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/comments?post=131739"}],"version-history":[{"count":2,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/131739\/revisions"}],"predecessor-version":[{"id":131748,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/131739\/revisions\/131748"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media\/131656"}],"wp:attachment":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media?parent=131739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/categories?post=131739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/tags?post=131739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}