Question

Foreign exchange transactions dependent on other foreign exchange transactions are called : (choose the correct alternative)

• A. Current account transaction
• B. Capital account transaction
• C. Autonomous transaction
• D. Accommodating transaction

Answer 1

The correct option is D Accommodating transaction

Foreign exchange transactions dependent on other foreign exchange transactions are called 'Accommodating transactions'.
Rationale: Accommodating transactions are those that are undertaken as a consequence of the autonomous transactions.

Hence, the correct answer is option 'D'.