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Question
Which motive characterizes autonomous transactions in the Balance of Payments?
Options
To finance the BoP gap
Independent / Profit or Need-based
To maintain the official exchange rate
To offset statistical discrepancies in recording
MCQ
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Solution
Autonomous transactions are undertaken for their own sake — they are independent and profit or need-based. They occur regardless of the state of the BoP, unlike accommodating transactions, whose motive is to finance the BoP gap.
shaalaa.com
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