Giving reason, state whether the following statement are true or false.
Accommodating items of trade are undertaken in order to maintain the balance in the BOP account.
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True.Explanation:
Accommodating transactions are net consequences of autonomous transactions that are undertaken to correct disequilibrium in autonomous items of BOP.
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Giving reason, state whether the following statement are true or false.
Foreign exchange received on account of export of sugar will be recorded in current account.
Giving reasons, state whether the following statements are true or false:
Both depreciation and devaluation of domestic currency have the same meaning.
Giving reason, state whether the following statement are true or false.
Unilateral transfers received from abroad will be recorded as a credit item of BOP on current account.