Which of the following is incorrect about accommodating transactions of the BoP? Option 1: They are termed 'below the line' items. Option 2: These are determined by the gap in the balance of payments. Option 3: They are independent of the state of BoP. Option 4: They are made to bridge the gap in the BoP.

The answer is 'They are independent of the state of BoP.'. View full solution:

CUET Economics - Which of the following is incorrect about accommodating transactions of the BoP? | PYQs + Solutions

CUET Economics 2025 16 May Shift 1

Macro

Medium

They are termed 'below the line' items.

These are determined by the gap in the balance of payments.

They are independent of the state of BoP.

They are made to bridge the gap in the BoP.

✅ Correct Option: 3

Related questions:

16 May Shift 1

Suppose the central bank of an economy records a net increase in the foreign exchange reserves for a given quarter. How will this be reflected in the balance of payments account of this economy?

13 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Current Account	(I) Receipts < Payments
(B) Capital Account	(II) Net Investment Income.
(C) Current Account Deficit	(III) Transfer Payment
(D) Trade in Services	(IV) Portfolio Investment

Choose the correct answer from the options given below:

13 May Shift 2

The place where currencies are traded is known as .........

CUET Economics 2025 16 May Shift 1 PYQs

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