NextMockSearch exams, e.g. SSC CGL, UPPSC, Lekhpal
हिंदी
UPSC PYQPrelims 2020

Civil Services Examination · Question 49

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:

  1. 1 only
  2. 1 and 2 only
  3. 3 only
  4. 1, 2 and 3
Show answer & explanation

Answer: (A) 1 only

Explanation

Low reliance on short-term external debt reduces vulnerability to sudden capital flight. More foreign banks and full capital account convertibility increase exposure to global shocks.