Match List-I with List-IL List-

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

Match List-I with List-IL

List-I (Book/Theory proposed/Characteristic, etc.)	List-II (Author/Thinker/Name of Theory, etc.)
(A) Autonomous items	(I) Net of visible trade
(B) Accomodating items	(II) Above the line items
(C) Balance of trade	(III) Portfolio investment
(D) Capital account	(IV) Below the line items

Choose the correct answer from the options given below:

Options:

(A)-(III), (B)-(II), (C)-(I), (D)-(IV)

(A)-(II), (B)-(IV), (C)-(I), (D)-(III)

(A)-(I), (B)-(II), (C)-(IV), (D)-(III)

(A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Correct Answer:

(A)-(II), (B)-(IV), (C)-(I), (D)-(III)

Explanation:

The correct answer is Option (2) → (A)-(II), (B)-(IV), (C)-(I), (D)-(III)

Here's the correct matching:

(A) Autonomous items - (II) Above the line items: Autonomous items in the balance of payments are independent of the balance of payments itself. They are considered "above the line" items.
(B) Accommodating items - (IV) Below the line items: Accommodating items, such as changes in foreign exchange reserves, adjust to correct imbalances in the balance of payments. They are considered "below the line" items.
(C) Balance of trade - (I) Net of visible trade: The balance of trade refers to the difference between a country's exports and imports of goods (visible trade).
(D) Capital account - (III) Portfolio investment: Portfolio investment, such as the purchase of stocks and bonds in foreign countries, is a significant component of the capital account in the balance of payments.