The measurement of Balance of Payments deficit is based on _____ transactions.

Autonomous

The correct answer is Option (2) → Autonomous

The deficit or surplus in the Balance of Payments (BoP) is measured on the basis of autonomous transactions. These are transactions that are made due to economic motives such as profit, interest, or investment, and not to correct any imbalance in the BoP.

If the total autonomous receipts are less than the total autonomous payments, the country faces a BoP deficit.

Accommodating transactions (like borrowing or using foreign exchange reserves) are recorded to balance the BoP, after measuring the deficit or surplus.