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Question : 4
Total: 49
'Deficit' in Balance of Payment (BOP) refers to the excess of ______.
(Choose the correct alternative)
(Choose the correct alternative)
Solution:
(c) Autonomous payments over Autonomous receipts.
Explanation:
(i) Status of Balance of Payment (BOP) i.e., whether it is surplus BOP or deficit Balance of Payment (BOP) is ascertained considering autonomous transactions (both current and capital).
(ii) Accommodating transactions are done after considering status of Balance of Payment (BOP), to cover deficit arising form autonomous transactions.
Explanation:
(i) Status of Balance of Payment (BOP) i.e., whether it is surplus BOP or deficit Balance of Payment (BOP) is ascertained considering autonomous transactions (both current and capital).
(ii) Accommodating transactions are done after considering status of Balance of Payment (BOP), to cover deficit arising form autonomous transactions.
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