Question : Which of the following statement is correct?
- Autonomous transactions takes place in a capital account only.
- Excess of foreign exchange receipts over foreign exchange payment on account of accommodating transactions equals deficit in the balance of payment.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 2 is true and statement 1 is false.
Answer (1)
17th Jan, 2024
Correct Answer:
Both are false
Solution :
Autonomous transactions takes place in both capital & current account.
Excess of foreign exchange receipts over foreign exchange payment on account of autonomous transactions equals deficit in the balance of payment.
Hence option B is correct .
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