Macro

Balance of Payments

Medium

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

✅ Correct Option: 4

Autonomous transactions occur for profit motive and are independent of the state of the BOP. They are called above-the-line items and occur in both current and capital accounts. The BOP is in surplus when autonomous receipts exceed autonomous payments, making option 4 correct.

2025: 13 May Shift 1

Suppose an Indian manufacturer of steel acquires a steel manufacturing unit in Europe. This type of transactions are recorded in which of the following.

2026: 12 May Shift 1

Official reserve transactions are made to bridge the gap in the Balance of Payment (BoP), they are seen as the ________ item in the BoP.

2023: 29 May Shift 2

People demand foreign exchange because:

2025: 15 May Shift 1

Which of the following is a component of the capital account?

2026: 15 May Shift 1

There is a new classification in which the Balance of Payment have been divided into three accounts - the Current Account, the Capital Account and?

2026: 6 June Shift 1

Match List-I with List-II

List-I	List-II
(A) Devaluation	(I) When the government decreases the exchange rate of foreign currency.
(B) Foreign Exchange Market	(II) Exchange rate is determined by the market forces.
(C) Revaluation	(III) The market in which national currencies are traded for one another.
(D) Floating Exchange Rate	(IV) Government action increases the exchange rate of foreign currency.

Choose the correct answer from the options given below:

Which of the following statement is true about Autonomous transactions?

Solution

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