Civil Services Examination · Question 6
Indian Government Bond Yields are influenced by which of the following? 1. Actions of the United States Federal Reserve 2. Actions of the Reserve Bank of India 3. Inflation and short-term interest rates Select the correct answer using the code given below.
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Answer: (D) 1, 2 and 3
Explanation
Global rates (US Fed), RBI policy, inflation expectations and short-term rates all affect Indian G-sec yields.