Attempt this previous-year question. The correct option stays hidden until you choose.
If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India?
1. Not depending on short-term foreign borrowings
2. Opening up to more foreign banks
3. Maintaining full capital account convertibility
Select the correct answer using the code given below:
Pick an option to check yourself.
• Correct Answer: A
• Short-term foreign borrowings are volatile and prone to sudden reversal during crises, causing liquidity crunches.
• More foreign banks increase contagion risk; full capital account convertibility facilitates rapid capital flight and currency volatility.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.
GyanGram