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Economics · 2025 · 3 marks
CBSE 2025 · Region 6 · Set 1 · Q11
Distinguish between autonomous transactions and accommodating transactions in the Balance of Payments of the economy.
Distinguish between autonomous transactions and accommodating transactions in the Balance of Payments of the economy.
Marking-scheme solution
Autonomous transactions are those international economic transactions which are independent of the state of Balance of Payments (BoP). These transactions are generally undertaken with an 'economic motive'. Such transactions are called 'above the line' items in the BoP account.Whereas;Accommodating transactions are those international economic transactions which are undertaken (by competent authorities) to cover the surplus or deficit in Balance of Payments (BoP). These transactions are independent of any economic motive. Such transactions are called 'below the line' items in the BoP account.
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CBSE Class 12 Economics past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.