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:

The correct answer is option 1: Accommodating transactions

Accommodating transactions refer to actions taken by the central bank or government to manage the balance of payments (BoP) and address deficits or surpluses. Selling financial assets to finance a BoP deficit is an example of an accommodating transaction, as it involves adjusting the financial operations to address the imbalance in the BoP.

Autonomous transactions are the transactions done with profit motives.