The measurement of Balance of Payments deficit is based on ……. transactions.
The measurement of Balance of Payments deficit is based on ……. transactions.
Show Hint
- Autonomous
- Accommodating
- Current account
- Capital account
The Correct Option is A
Solution and Explanation
The Balance of Payments (BOP) deficit is primarily measured based on autonomous transactions, which are transactions conducted due to economic motives and not influenced by the country's monetary policies. Autonomous transactions include trade in goods and services, income payments, and capital movements.
Conclusion: The correct answer is (A), as BOP deficit is based on autonomous transactions.
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