Cause of BoP imbalance relates to:
neither (a) nor (b)
autonomous items
accomodating items
both (a) and (b)
Autonomous items cause an imbalance in the BoP, and accommodating items correct these imbalances.
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".
Accommodating items are those items of BoP which:
(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.