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CUET Economics 2025 PYQs2 June Shift 1. Free, no login required.

Macro

past year questions, CUET Economics 2025 2 June Shift 1

Balance of Payments

past year questions, Macro, CUET Economics 2025 2 June Shift 1

Medium

Which of the following statements is true about autonomous transactions?

Solution

✅ Correct Option: 1

Option 1 -> Autonomous receipts > autonomous payments indicates BOP surplus - this correctly defines surplus condition.

Option 2 -> Autonomous transactions are 'above the line' items, not below the line items.

Option 3 -> Autonomous transactions occur in both current and capital accounts, not just capital account.

Option 4 -> This describes accommodating transactions, not autonomous transactions.

Hence, Option 1: BOP is said to be in surplus if autonomous receipts are greater than autonomous payments -> Autonomous transactions are undertaken for profit motive or personal satisfaction (like exports, imports, FDI). They are 'above the line' items. When autonomous receipts exceed autonomous payments, it creates a surplus in BOP. Conversely, when autonomous payments exceed autonomous receipts, it creates a deficit requiring accommodating transactions (below the line items) to balance the BOP. -> correct

Related questions:

2025: 28 May Shift 1

With reference to the above passage, the current account comprises?

  1. Exports and Imports of visible items only.
  2. Exports and imports of visible and invisible items and external borrowings.
  3. Exports and imports of goods & services plus transfer payments.
  4. Short Term Debt.

2025: 31 May Shift 1

Suppose, in a flexible exchange rate system, demand for foreign goods and services increases due to increased international travel by Indians.

Arrange the following statements in correct sequence.

(A) Exchange rate increases.

(B) Exports from India become more affordable for foreigners.

(C) India's income increases by keeping other factors constant.

(D) The demand curve shifts towards the right.

Choose the correct answer from the options given below:

  1. (D), (B), (C), (A)
  2. (D), (C), (B), (A)
  3. (D), (A), (B), (C)
  4. (D), (B), (A), (C)

2025: 31 May Shift 1

Which of the following are part of Capital account.

(A) Foreign Direct Investment.

(B) Offshore Funds.

(C) Portfolio Investment.

(D) Repayment of Loans.

Choose the correct answer from the options given below:

  1. (A), (B) and (D) only
  2. (A), (B) and (C) only
  3. (A), (B), (C) and (D)
  4. (B), (C) and (D) only

2026: 13 May Shift 1

A theory of international exchange which holds that, the price of similar goods in different countries is the same, this theory is known as the:

2023: 28 May Shift 2

If Trade Deficit is Rs 2000 crores and imports is worth Rs 4000 crore, then the value of exports will be :

2023: 28 May Shift 2

Current Account components of trade in services include :

(A) Gifts, Remittances

(B) Net Non-Factor Income

(C) Net Investment Income

(D) Grants

Choose the correct answer from the options given below :

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