Question

In the Balance of Payments, autonomous transactions are positioned:

Options

• 'Above the line'

• Outside the BoP accounts entirely

• 'On the line'

• 'Below the line'

Answer 1

Autonomous items are placed 'above the line' in the BoP because they are independent, profit or need-based transactions. The accommodating transactions that finance the resulting gap are placed 'below the line'.