Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

RBI governor, Shaktikanta Das gave orders to sell the financial assets to finance the deficit of BoP. What type of transaction is this?

Options:

Accommodating transactions

Autonomous transactions

Surplus transactions

Deficient transactions

Correct Answer:

Accommodating transactions

Explanation:

Autonomous transactions are the transactions done with profit motives, whereas, those transactions which are done to balance the BoP account are called as accommodating transactions. Thus, selling of financial assets is done in order to balance the BoP account, thus will be considered as accommodating transactions.