Distinguish between autonomous and accommodating items

1.	Distinguish between autonomous and accommodating items
Answer» Autonomous TRANSACTION Accommodating transaction Autonomous transaction refer to those international ECONOMIC transactions that ate undertaken with the sole motive of earning profit. Accommodating transactionefer to those international economic transactions that are to correct the disequilibrium in the autonomus item. They are ALSO called 'above the LINE items' in BOP They are also called' below the line items in BOP. They are independent of the BOP status of a country. They depend on the BOP status of a country, as they are compensating short-term capital transactions that are undertaken to correct the disequilibrium in the autonomous items.

Answer»

Autonomous TRANSACTION Accommodating transaction Autonomous transaction refer

to those international ECONOMIC transactions that ate undertaken with the

sole motive of earning profit. Accommodating transactionefer

to those international economic transactions that are to correct the disequilibrium in the autonomus item. They are ALSO called 'above the LINE items' in BOP They are also called' below the

line items in BOP. They are independent of the BOP status of a country. They depend on the BOP status of a

country, as they are compensating short-term capital

transactions that are undertaken to correct the disequilibrium in the autonomous items.

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