Economics · Balance of Payments

In Balance of Payments accounting, how are 'Accommodating Transactions' used when autonomous debits exceed autonomous credits (BOP deficit)?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1By increasing commercial export of goods and services.
2By transferring funds to the Errors and Omissions account.
3By encouraging foreign portfolio inflows without central bank participation.
4By official reserve drawdowns or foreign borrowing by central monetary authorities to balance the overall account.✓

Correct answer

By official reserve drawdowns or foreign borrowing by central monetary authorities to balance the overall account.

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