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in Class 12 by kratos

Explain the concept of 'deficit'in balance of payments.

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+5 votes
by kratos
 
Best answer

The transactions recorded in BOP account are classified as autonomous transactions and accommodating transactions. Autonomous Transactions refer to the international economic transactions taken with the motive of profit. Deficit in the BOP occurs when autonomous foreign exchange receipts fall short of autonomous foreign exchange payments. Autonomous transactions, the transaction not influenced by other transactions in the BOP

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