Advertisements
Advertisements
Question
Foreign exchange transactions which are independent of other transactions in the Balance of Payments Account are called ______.
Options
Current transactions
Capital transactions
Autonomous transactions
Accommodating transactions
Solution
Foreign exchange transactions which are independent of other transactions in the Balance of Payments Account are called autonomous transactions.
Explanation:-
An autonomous item in balance of payment refers to foreign exchange transactions which are made independently of the state of the balance of payment, such as profit motive.
APPEARS IN
RELATED QUESTIONS
Explain the distinction between autonomous and accommodating transactions in balance of payments. Also explain the concept of balance of payments 'deficit' in this context
Indian investors borrow from abroad. Answer the following:
a. In which sub-account and on which side of the Balance of Payments Account will this borrowing be recorded? Give reason.
b. Explain what is the impact of this borrowing on exchange rate.
Give the meaning of balance of payments.
Will the following be included in the domestic product of India? Give reasons for your answer.
Profit earned by foreign companies in India
Will the following be included in the domestic product of India? Give reasons for your answer.
Salaries of Indians working in the Russian Embassy in India
Name the broad categories of transactions recorded in the 'current account' of the Balance of Payments Accounts
Where will the sale of machinery to abroad be recorded in the Balance of Payments Accounts? Give reasons.
Where is 'borrowings from abroad' recorded in the Balance of Payments Accounts? Give reasons.
Give the meanings of 'autonomous' transactions and 'accommodating' transactions in the Balance of Payments Accounts.
Distinguish between 'autonomous' and accommodating' Balance of Payments transactions.
How is balance of payment 'deficit' measured? Explain.
Distinguish between Autonomous and Accommodating transactions of Balance of Payments account.
Balance of Payments of an economy records ____________ for a fiscal year.
A balance of payments is an accounting statement that provides a systematic record of all the ______ transactions between the residents of a country and the rest of the world during a given period of time.
Accommodating items are also called ______
An Indian company located in India invests in a company located abroad. This transaction is entered in India's Balance of Payments Account on:
Categorise the following item into Current Account or Capital Account of Balance of Payment of India.
Acquisition of land in India by an American firm
Categorise the following item into Current Account or Capital Account of Balance of Payment of India.
Dividend paid to foreigners on their investment in shares in India.
