What are Autonomous and Accommodating transactions in BOP account? Give an example of each. 
or
Excess of foreign exchange receipts over foreign exchange payments on account of accommodating transactions equal deficit in BOP. True or false? Give reasons. 

Economists distinguish between autonomous and accommodating items used in BOP. The basic difference between the two is that whereas deficit or surplus in BOP occurs due to autonomous items, the accommodating items are taken to maintain balance in BOP account.
(a)    Autonomous items in BOP. These refer to international economic transactions that take place due to some economic motives like profit maximisation. Such transactions are independent of the state of country's balance of payments i.e. irrespective of whether BOP is favourable or unfavourable. These items are generally called ‘above the line items’ in BOP. Again it is autonomous transactions which make deficit or surplus in BOP. BOP is in deficit if the autonomous receipts are less than autonomous payments. BOP is in surplus if the autonomous receipts are greater than autonomous payments. In other words, deficit or surplus in BOP occurs due to autonomous items (As against it, accommodating items are meant to restore equilibrium). Mind, when total inflow (of foreign exchange) on account of autonomous transactions is less than total outflow on account of such transactions, there is deficit in BOP account.
(b)    Accommodating items in BOP. These refer to transactions that take place to cover deficit or surplus in the autonomous transactions. In other words accommodating items are taken to maintain balance in BOP account. These items are also called ‘below the line items’. Because of government financing, official settlement, are seen as accommodating items to keep the BOP identity. The official settlement approach is based on the assumption that monetary authority is the ultimate financier of any deficit in BOP or the ultimate recipient of any surplus.
True or False. The above statement is true because accommodating receipts are used to finance BOP deficit which occurs when autonomous receipts are less than autonomous payments.