Accommodating items are those items of BoP which:
lead to increase or decrease in official reserves with RBI
all of these
are conditioned by the positive or negative BoP status
are not determined by considerations of profit
Accommodating items have no profit-motive, are determined on the stance of the BoP and affect the level of reserves.
State the following true or false:
(a) Accommodating items are undertaken in order to balance the BOP account.
(b) Foreign exchange received on account of textile will be recorded in the capital account of the BOP.
(c) Autonomous items are also known as "Below the line items".
(a) The balance of visible trade is 4000 crores and the balance of invisible trade is 25,000 crores. If the value of imports of services is 7000 crores, what will be the value of export of services?
(b) State the following true or false:
(i) Accommodating items are undertaken in order to balance the BOP account.
(ii) Foreign exchange received on account of textile will be recorded on the capital account of BOP.
(iii) Autonomous items are also known as " Below the line items''.
Name two items each relating to Current Account BoP and Capital Account BoP.
In a BOP crisis, foreign reserves of the economy are generally rising. State true or false.