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In India's BoP structure, 'Change in Reserves' is categorized as:

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Question

In India's BoP structure, 'Change in Reserves' is categorized as:

Options

  • Accommodating Item

  • Separate Item

  • Summary

  • Current Account – Trade

MCQ
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Solution

'Change in Reserves' is categorized as an accommodating item because changes in foreign exchange reserves are used to finance the BoP surplus or deficit. It appears at the end of the structure, after the Overall Balance.

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