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Question
Distinguish between Autonomous and Accommodating transactions of Balance of Payments account.
Solution
The difference between Autonomous and Accommodating transactions of Balance of Payments account is given as follows:
| Basis | Autonomous Transactions | Accommodating Transactions |
| Definition | Autonomous items refer to those international economic transactions that are undertaken with the sole motive of earning profit. | Accommodating items refer to those international economic transactions that are not undertaken with the motive of earning profit such as government financing, injection, or withdrawal from the official reserves. |
| Another name | Autonomous transactions are also called 'above the line items' in BOP. | Accommodating items are also called 'below the line items' in BOP. |
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