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International economic transactions are called ....... 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 balance of payments.

Solution

✅ Correct Option: 3

Option 1 -> Errors and omissions are statistical discrepancies in balance of payments accounts, not actual transactions.

Option 2 -> Accommodating transactions are undertaken specifically to bridge the gap in balance of payments, making them dependent on BOP state.

Option 3 -> Autonomous transactions are undertaken for profit, business, or economic reasons, independent of the balance of payments situation.

Option 4 -> Official reserve sale is a type of accommodating transaction used to finance BOP deficits, thus dependent on BOP.


Hence, Option 3: Autonomous transactions -> These are also called 'above the line' transactions that occur due to profit motives, business needs, investment opportunities, or consumption desires. They are undertaken regardless of the balance of payments position. Examples include exports, imports, foreign investments, and remittances made for normal business purposes. They contrast with accommodating transactions which are undertaken specifically to correct BOP imbalances. -> correct

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