Question

Accommodating transactions occupy which position in the Balance of Payments?

Options

• They are excluded from BoP records

• 'Below the line'

• 'Above the line'

• 'On the line'

Answer 1

Accommodating transactions are positioned 'below the line' because they are undertaken only to finance the BoP gap. The 'line' divides the independent autonomous items (above) from the gap-financing accommodating items (below).