The correct option is Autonomous receipts are greater than autonomous payments..
Explanation
The Balance of Payments (BoP) distinguishes between transactions based on their underlying motive. The determination of a BoP "Surplus" or "Deficit" relies exclusively on the net position of Autonomous Transactions, often referred to as "above the line" items.
Detailed Analysis
- Autonomous Transactions: These are international economic transactions undertaken for their own sake (e.g., profit maximization), such as merchandise exports, imports, and foreign investments. They occur independently of the state of the BoP.
- BoP Surplus: Occurs when Autonomous Receipts exceed Autonomous Payments. This excess supply of foreign currency is then absorbed by the central bank.
- BoP Deficit: Occurs when Autonomous Payments exceed Autonomous Receipts.
- Accommodating Transactions: These are "below the line" transactions undertaken by the central authority (Central Bank) to finance a deficit or absorb a surplus. For example, an increase in official reserves is an accommodating item resulting from a BoP surplus. Therefore, Accommodating receipts are greater than accommodating payments. is incorrect as accommodating items are a consequence, not the cause.
- Trade Balance (Option c): The trade balance only accounts for the export and import of goods. A country may have a trade surplus but still face an overall BoP deficit if there are significant outflows in the Capital Account.
- Official Reserve Transactions (Option d): If official reserve transactions are zero, it implies that autonomous receipts exactly equal autonomous payments. This represents a state of BoP Equilibrium, not a surplus.
Key Takeaway: A Balance of Payments surplus exists strictly when the total inflows from autonomous transactions (current and capital account items undertaken for economic motives) exceed the total outflows from the same.