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Question
Accommodating transactions in the Balance of Payments are undertaken with which motive?
Options
To record unilateral transfers
To finance the BoP gap
Independent / Profit or Need-based
To earn profit on exports of services
MCQ
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Solution
Accommodating transactions are not independent transactions; their specific motive is to finance the BoP gap, i.e., the surplus or deficit that arises from autonomous transactions.
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