Assertion (A): The Balance of payments is in surplus, if autonomous receipts are greater than autonomous payments. Reason (R): Autonomous transactions are determined by the difference in the Balance of Payments.

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KollegeApply · Accepted Answer

Assertion (A) is true, but Reason (R) is false. Explanation: Surplus in BOP occurs when Autonomous Receipts (both current and capital) exceed Autonomous Payments (both current and capital). The difference in BOP determines which transactions can be accommodated. These are done on purpose by the RBI after determining whether the BOP is in deficit or surplus.

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