Question

Match List-I with List-II:

List-I	List-II
(A) Autonomous items	(I) Net of visible trade
(B) Accommodating items	(II) Above the line items
(C) Balance of trade	(III) Portfolio investment
(D) Capital account	(IV) Below the line items

Choose the correct answer from the options given below:

• A. (A)-(III), (B)-(II), (C)-(I), (D)-(IV)
• B. (A)-(II), (B)-(IV), (C)-(I), (D)-(III)
• C. (A)-(I), (B)-(II), (C)-(IV), (D)-(III)
• D. (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Answer 1

The Correct Option is B

Matching List-I with List-II requires an examination of each entry:

• Autonomous items are business or personal transactions independent of balance of payment considerations, also known as above the line items (II).
• Accommodating items are transactions designed to offset surpluses or deficits in autonomous items, referred to as below the line items (IV).
• Balance of trade signifies the net visible trade, representing the difference between the value of exported and imported goods (I).
• Capital account encompasses financial transactions, including foreign direct investment and portfolio investment (III).

The correct matching is therefore: (A)-(II), (B)-(IV), (C)-(I), (D)-(III)