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 BoP then such international economic transactions are called as..........................
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 BoP then such international economic transactions are called as..........................
Solution
✅ Correct Option: 1
Transactions undertaken for their own sake, such as for profit, and independent of the state of the BoP are autonomous transactions. Accommodating transactions, by contrast, are undertaken specifically to settle the BoP gap. Hence the answer is autonomous.
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