Which of these is an accommodating item?

Export of engineering goodsCorrect answerYour answerDrawing down foreign exchange reserves to meet a BoP gapCorrect answerYour answerForeign direct investmentCorrect answerYour answerRemittances from workers abroadCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Running down reserves is done because of the BoP gap, not for its own sake.

Concept: Accommodating items
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsAutonomous and accommodating; BoP deficit

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

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

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Which of these is an accommodating item?

Explanation