Foreign exchange transactions which are independent of other transactions in the Balance of Payments Account are called _________________.

Current Transactions

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Capital Transactions

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Autonomous Transactions

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Accommodating Transactions

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Solution

The correct option is D Autonomous Transactions
Autonomous transactions are the foreign exchange transactions which are independent of other transactions in the Balance of Payments Account.
Hence, C is the correct option.

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Similar questions

(a) How does giving incentives for exports influence Foreign Exchange Rate? Explain diagrammatically.

(b) How are the following transactions recorded in the balance of payment accounts? Give reasons.

(i) Foreign investment from abroad

(ii) Sale of machinery to abroad

Which of the following transactions are recorded in the current account of the balance of payments?

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