Match each transaction with its type.

Match each transaction with its type. — CUET Economics practice

Question 47

MediumOriginal question

Match each transaction with its type.

List I	List II
A. Export of cotton for profit	I. Accommodating, use of reserves
B. RBI sells dollars from reserves to cover a BoP gap	II. Autonomous, current account
C. A foreign firm invests in an Indian start-up	III. Accommodating, official borrowing
D. India borrows from the IMF to meet a BoP crisis	IV. Autonomous, capital account

A-II, B-IV, C-III, D-ICorrect answerYour answerA-IV, B-II, C-I, D-IIICorrect answerYour answerA-III, B-I, C-IV, D-IICorrect answerYour answerA-II, B-I, C-IV, D-IIICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Trade and investment for profit are autonomous; reserve sales and IMF borrowing to fill a gap are accommodating.

Concept: Autonomous and accommodating
Typical timeTypical: 90 s
Your timeYours: —

The rule this testsAutonomous and accommodating; BoP deficit

Practise this chapter →

Ten questions from Balance of Payments, at your own pace.

Practise this chapter →

Ten questions from Balance of Payments, at your own pace.

Question 47

Explanation