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Question
Distinguish between Autonomous transactions and Accommodating transactions.
Solution
| Basis of Difference | Autonomous Transactions of BOP |
Accommodating Transactions of BOP |
| Meaning |
Those foreign transactions done by a country having an economic goal, such as earning income or profit. |
Those international transactions are done to achieve balance of payment (BOP) equality. |
| Undertaken by whom | The private sector carries these out. | A country's apex monetary body carries these out. |
| Example | McDonald outlet in India. | Loan taken by RBI from IME. |
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