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

Hard

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:

15 May Shift 1

"GST has improved India's ranking in terms of ease of doing business. The introduction of GST has attracted foreign investors in large numbers."

What will be the sequential impact of the above on the exchange rate of the rupee in the international money market?

(A) The supply curve of foreign exchange shifts to the right.

(B) The exchange rate starts falling.

(D) An increase in foreign investment increases the supply of foreign exchange.

Choose the correct answer from the options given below:

15 May Shift 1

Which of the following is not a merit of the flexible exchange rate system?

29 May Shift 2

The cost of a bag increased from $8 to$ 12 in the US and ₹ 400 to ₹480 in India. What affect it has on the dollar in respect to exchange price?