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Assertion (A): Accommodating transactions are undertaken to make equilibrium in BoP account.
Reason (R): Accommodating items are also called above the line items.
Alternatives
  • a)
    Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
  • b)
    Both Assertion (A) and Reason (R)are correct, but Reason (R) is not the correct explanation of Assertion (A)
  • c)
    Assertion (A) is correct, but Reason (R) is incorrect
  • d)
    Both Assertion (A) and Reason (R) are incorrect
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Assertion (A): Accommodating transactions are undertaken to make equil...
Explanation:


Assertion (A) states that accommodating transactions are undertaken to make equilibrium in BoP account, which is correct. Accommodating transactions refer to deliberate transactions undertaken by the central bank or government to maintain the balance of payments equilibrium, such as buying or selling foreign currency reserves or adjusting interest rates.

Reason (R) states that accommodating items are also called above the line items, which is incorrect. Above the line items refer to the current account transactions in the balance of payments, which include trade in goods and services, income from investments, and current transfers. Accommodating items are recorded in the capital and financial account of the balance of payments, which includes transactions related to capital flows, financial investments, and other items.

Therefore, Assertion (A) is correct, but Reason (R) is incorrect, making option (C) the correct answer.
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Community Answer
Assertion (A): Accommodating transactions are undertaken to make equil...
Accommodating transactions are balancing transactions of BoP, so these are called as below the line items.
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Assertion (A): Accommodating transactions are undertaken to make equilibrium in BoP account.Reason (R): Accommodating items are also called above the line items.Alternativesa)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A) and Reason (R)are correct, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is correct, but Reason (R) is incorrectd)Both Assertion (A) and Reason (R) are incorrectCorrect answer is option 'C'. Can you explain this answer?
Question Description
Assertion (A): Accommodating transactions are undertaken to make equilibrium in BoP account.Reason (R): Accommodating items are also called above the line items.Alternativesa)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A) and Reason (R)are correct, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is correct, but Reason (R) is incorrectd)Both Assertion (A) and Reason (R) are incorrectCorrect answer is option 'C'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Assertion (A): Accommodating transactions are undertaken to make equilibrium in BoP account.Reason (R): Accommodating items are also called above the line items.Alternativesa)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A) and Reason (R)are correct, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is correct, but Reason (R) is incorrectd)Both Assertion (A) and Reason (R) are incorrectCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Assertion (A): Accommodating transactions are undertaken to make equilibrium in BoP account.Reason (R): Accommodating items are also called above the line items.Alternativesa)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A) and Reason (R)are correct, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is correct, but Reason (R) is incorrectd)Both Assertion (A) and Reason (R) are incorrectCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Assertion (A): Accommodating transactions are undertaken to make equilibrium in BoP account.Reason (R): Accommodating items are also called above the line items.Alternativesa)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A) and Reason (R)are correct, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is correct, but Reason (R) is incorrectd)Both Assertion (A) and Reason (R) are incorrectCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 12. Download more important topics, notes, lectures and mock test series for Class 12 Exam by signing up for free.
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