Read the passage carefully and answer the questions based on the passage:

Autonomous and Accommodating Transactions

International economic transactions are called autonomous when transactions are made due to some reason other than to bridge the gap in the balance of payments, that is, when they are independent of the state of BOP. One reason could be to earn profit. These items are called 'above the line' items in the BOP. The balance of payments is said to be in surplus (deficit) if autonomous receipts are greater (less) than autonomous payments.

Accommodating transactions (termed 'below the line' items), on the other hand, are determined by the gap in the balance of payments, that is, whether there is a deficit or surplus in the balance of payments. In other words, they are determined by the net consequences of the autonomous transactions. Since the official reserve transactions are made to bridge the gap in the BoP, they are seen as the accommodating item in the BOP.

Which of the following is not an autonomous transaction of the balance of payments?

official reserve transactions

The correct answer is Option (3) → official reserve transactions

Autonomous transactions are those carried out for independent economic reasons, such as earning profit or interest — examples include exports, imports, foreign direct investment (FDI), and external commercial borrowings (ECB). In contrast, official reserve transactions are accommodating transactions, undertaken by the central bank to bridge the gap in the balance of payments — for example, buying or selling foreign exchange to correct a deficit or surplus.