Match List-I with List-II and select the correct answer: List I List II a. Accommodating capital flow 1. Creation of international reserve assets by the IMF and their allocation among member countries in order to improve international liquidity b. Autonomous capital flow 2. Estimate of foreign exchange flow on account of either variations in the collection of related figures or unrecorded illegal transactions of foreign exchange c. SDR Allocation 3. Inflow of foreign exchange to meet the balance of payments deficit, normally from the IMF d. Statistical discrepancy 4. Flow of loans/investments in normal course of business.

a-1, b-2, c-4, d-3
a-3, b-4, c-1, d-2
a-3, b-4, c-2, d-1
a-3, b-1, c-2, d-4

The correct answer is: A. a-1, b-2, c-4, d-3

Accommodating capital flows are inflows of foreign exchange that are used to meet a balance of payments deficit. They are typically provided by the International Monetary Fund (IMF) in the form of Special Drawing Rights (SDRs).

Autonomous capital flows are flows of capital that are not directly related to a country’s balance of payments. They are typically driven by factors such as interest rates, exchange rates, and economic growth.

SDR allocations are the creation of new SDRs by the IMF. SDRs are a type of international reserve asset that can be used by member countries to meet their balance of payments needs.

Statistical discrepancy is the difference between the recorded and estimated values of a country’s international transactions. It is typically caused by errors in data collection or reporting.

Here is a more detailed explanation of each option:

  • Accommodating capital flow is an inflow of foreign exchange that is used to meet a balance of payments deficit. It is typically provided by the International Monetary Fund (IMF) in the form of Special Drawing Rights (SDRs). SDRs are a type of international reserve asset that can be used by member countries to meet their balance of payments needs.

  • Autonomous capital flow is a flow of capital that is not directly related to a country’s balance of payments. It is typically driven by factors such as interest rates, exchange rates, and economic growth.

  • SDR allocation is the creation of new SDRs by the IMF. SDRs are a type of international reserve asset that can be used by member countries to meet their balance of payments needs. SDRs are allocated to member countries in proportion to their quota, which is based on their economic size.

  • Statistical discrepancy is the difference between the recorded and estimated values of a country’s international transactions. It is typically caused by errors in data collection or reporting.

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