Differentiate autonomous and accommodating items of balance of payment.

Asked by Topperlearning User | 19th Apr, 2016, 10:54: AM

Expert Answer:

While deficit or surplus in balance of payment occurs because of autonomous items which are determined by economic motive, the accommodating items are meant to restore the balance of payment identity. Balance of payment always balances because of the accommodating items.

Answered by  | 19th Apr, 2016, 12:54: PM