Advertisements
Advertisements
Question
Which of the following constitutes an accommodating item in the BoP?
Options
Unilateral transfers
Foreign Direct Investment (FDI)
Exports of services
Changes in foreign exchange reserves
MCQ
Advertisements
Solution
Accommodating items include borrowings from the IMF or other international institutions and changes in foreign exchange reserves. Exports of services, unilateral transfers, and FDI are all autonomous items.
shaalaa.com
Is there an error in this question or solution?
