Question

Foreign exchange transactions meant to correct BOP imbalance is called : *

1 point

A. Current Account Transactions

B. Capital Account Transactions

C. Accommodating Transactions

D. Autonomous Transactions

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Answer 1

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'.

(D) is your answer

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