Distinguish: between autonomous transactions and accommodating transactions of balance of payments account.
Distinguish: between autonomous transactions and accommodating transactions of balance of payments account.
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The difference between autonomous and accommodating transactions is tabulated below :
| Autonomous Transactions | Accommodating Transactions |
| These are transactions which are undertaken for economic motive i.e. profit. | These are transactions which are not undertaken for economic motive. |
| These transactions are called above the line items in BOP. | These transactions are called below the line items in BOP |
| The balance of these transactions governs the overall BOP balance. | These transactions are balancing in nature, i.e. they correct the disequilibrium in autonomous items. |
| If the autonomous receipts are less than payments, then it shows deficit balance in BOP and vice-versa | If there is deficit balance in BOB then government-rundown its reserve in the form of accommodating the transaction to cover the deficit in autonomous transactions. |
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