Distinguish between autonomous transactions and accommodating transactions in
the Balance of Payments of the economy.
Solution and Explanation
- Autonomous Transactions:
These are transactions that occur due to economic conditions or external factors and do not require any adjustment in the Balance of Payments. They are also known as independent transactions. Examples include exports, imports, foreign investment, and loans.
- Accommodating Transactions:
These transactions occur as a result of adjustments to maintain the Balance of Payments equilibrium. They include borrowing from foreign countries or drawing down reserves. They are required to balance the inflows and outflows from autonomous transactions.
Top Questions on Balance of payments (BOP)
- Read the following statements carefully :
Statement 1: Import of heavy machinery from Japan is a source of demand for foreign exchange.
Statement 2: Financial aid by International Bank for Reconstruction and Development (IBRD) for landslide in Wayanad (Kerala) is a source of supply of foreign exchange.
In the light of the given statements, choose the correct option from the following :- CBSE CLASS XII - 2025
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Elaborate the impact of Incredible India Campaign on foreign exchange reserves and Balance of Payment of India.- CBSE CLASS XII - 2025
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- Read the following text carefully:
Balance of Payments (BoP) systematically summarises the economic transactions of an economy with the rest of the world, over a given period of time. The BoP can be broadly divided into two accounts namely:- Current account
- Capital account
- Non-factor services such as travel, transportation, insurance etc.
- Transfer which do not involve any value in exchange.
- Income which includes compensation of employees and investment income.
- Non-debt flows such as direct and portfolio investments.
- Debt flows such as external assistance, commercial borrowings, non-resident deposits etc.
- (a) Define Balance of Payments.
- (b) Differentiate between the two accounts of Balance of Payments.
- (c) Give the meaning of Balance of Payments deficit with formula.
- CBSE CLASS XII - 2025
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- Distinguish between Autonomous transactions and Accommodating transactions.
- CBSE CLASS XII - 2025
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- A square loop of side 0.50 m is placed in a uniform magnetic field of 0.4 T perpendicular to the plane of the loop. The loop is rotated through an angle of 60° in 0.2 s. The value of emf induced in the loop will be:
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A racing track is built around an elliptical ground whose equation is given by \[ 9x^2 + 16y^2 = 144 \] The width of the track is \(3\) m as shown. Based on the given information answer the following:
(i) Express \(y\) as a function of \(x\) from the given equation of ellipse.
(ii) Integrate the function obtained in (i) with respect to \(x\).
(iii)(a) Find the area of the region enclosed within the elliptical ground excluding the track using integration.
OR
(iii)(b) Write the coordinates of the points \(P\) and \(Q\) where the outer edge of the track cuts \(x\)-axis and \(y\)-axis in first quadrant and find the area of triangle formed by points \(P,O,Q\).
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