Question

capital flows that takes place to help bring equilibrium in the bop are called

Answer 1

Answer:

If the balance of payments moves against a country, adjustments must be made by encouraging exports of goods, services or other forms of exports, or by discouraging imports of all kinds.

Answer 2

Capital flows that takes place to help bring equilibrium in the bop are called accomodating capital flows.

1. Both types of capital flows i.e. accomodating and autonomous capital flows can bring Balance of Payments in equilibrium.
2. But accomodating capital flows are specifically for this purpose.
3. They are unforeseen and unplanned in nature.
4. For example a loan from foreign countries.
5. Such balances must be taken seriously as they indicate sick economy.