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Question
Foreign Exchange Thansactions which are independent of other transactions in the Balance of Payments Account are called:
Options
Current transactions
Capital transactions
Autonomous transactions
Accommodating transactions
MCQ
Solution
Autonomous transactions
Explanation:
Autonomous transactions are not affected by the current state of the BOP account. For instance, if a foreign corporation invests in India with the intention of profiting, the transaction is unaffected by the country's BOP state.
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