Question

Accommodating items are recorded in the BoP as:

Options

• Official reserve transactions (Capital Account in the old classification)

• Items in the Current Account

• Entries under Errors and Omissions

• Items in both the Current and Capital Accounts

Answer 1

Accommodating items are recorded under official reserve transactions, which in the old classification fall under the Capital Account. This is where items like IMF borrowings and changes in foreign exchange reserves appear.