Question

Distinguish between autonomous and accomodating items of balance of payment

Answer 1

The differences between autonomous and accommodating items of bop are stated as : -

1.) Autonomous items are those transactions which are done in consideration of profit while accommodating items are done in order to correct bop imbalance.

2) Autonomous items involves transfer of goods and services from country while accommodating items involve movement of official reserves.

3) Autonomous items are known as above the line items while accomodating items are known as below the line items.