CUET Preparation Today
Which of the following statement is true about Autonomous transactions? |
These items are done to correct the imbalance of BOP Account These are also known as below the line item These only occur in capital A/c of BOP BOP is said to be in surplus if autonomous receipts are greater than autonomous payments |
BOP is said to be in surplus if autonomous receipts are greater than autonomous payments |
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. |
