Question

Distinguish between 'autonomous and accommodating' Balance of Payments transactions.

Answer 1

Autonomous transaction	Accommodating transaction
Autonomous transaction refer to those international economic transactions that ate undertaken with the the sole motive of earning profit.	Accommodating transaction for to those international economic transactions that are to correct the disequilibrium in the autonomous 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.