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Directions for the following 4 (four) items: Read the following passage and answer the four items that follow. YOUR' answers to these items should be based on the passage only.

Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greece's sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.
The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks' ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.
 
Q.According to the passage, the financial markets in the emerging market economies including India had the adverse impact in recent years due to
1. weak global economic prospects.
2. uncertainties in the international financial markets.
3. sovereign risk concerns in the Euro area.
4. bad monsoons and the resultant crop loss.
  • a)
    1 and 2 only
  • b)
    1, 2 and 3
  • c)
    2 and 3 only
  • d)
    2, 3 and 4
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Directions for the following 4 (four) items: Read the following passag...
Statement 4 is nowhere mentioned in the passage.
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Most Upvoted Answer
Directions for the following 4 (four) items: Read the following passag...
Explanation:
Financial markets in India have faced challenges due to various factors as mentioned in the passage. The adverse impact on emerging market economies like India in recent years can be attributed to the following key points:

Weak Global Economic Prospects:
- The passage highlights that weak global economic prospects have had an impact on the financial markets in emerging economies, including India.

Uncertainties in International Financial Markets:
- The passage mentions that continuing uncertainties in the international financial markets have also affected the financial markets in emerging economies.

Sovereign Risk Concerns in the Euro Area:
- Another significant factor noted in the passage is the sovereign risk concerns, particularly in the Euro area, which have affected financial markets in emerging economies like India.

Incorrect Option:
- The passage does not mention anything about bad monsoons and the resultant crop loss impacting the financial markets in emerging economies. Therefore, option 4 (bad monsoons and crop loss) is not a valid reason for the adverse impact on financial markets.
Therefore, based on the information provided in the passage, the correct answer is option 'B' - 1, 2, and 3, as weak global economic prospects, uncertainties in international financial markets, and sovereign risk concerns in the Euro area have all contributed to the adverse impact on financial markets in emerging economies like India.
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Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greeces sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.Risk and liquidity management assumes more importance in the Indian banking system in future due to 1. further globalization.2. more consolidation and deregulation of the financial system.3. further diversification of the financial system.4. more financial inclusion in the economy.

Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greeces sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.According to the passage, in the Indian financial system, banks ability to with stand stress is critical to ensure overall financial stability because Indian financial system is

Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greeces sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.The Indian financial markets are affected by global changes mainly due to the

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Directions for the following 4 (four) items: Read the following passage and answer the four items that follow. YOUR' answers to these items should be based on the passage only.Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greece's sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks' ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.According to the passage, the financial markets in the emerging market economies including India had the adverse impact in recent years due to1. weak global economic prospects.2. uncertainties in the international financial markets.3. sovereign risk concerns in the Euro area.4. bad monsoons and the resultant crop loss.a)1 and 2 onlyb)1, 2 and 3c)2 and 3 onlyd)2, 3 and 4Correct answer is option 'B'. Can you explain this answer?
Question Description
Directions for the following 4 (four) items: Read the following passage and answer the four items that follow. YOUR' answers to these items should be based on the passage only.Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greece's sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks' ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.According to the passage, the financial markets in the emerging market economies including India had the adverse impact in recent years due to1. weak global economic prospects.2. uncertainties in the international financial markets.3. sovereign risk concerns in the Euro area.4. bad monsoons and the resultant crop loss.a)1 and 2 onlyb)1, 2 and 3c)2 and 3 onlyd)2, 3 and 4Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Directions for the following 4 (four) items: Read the following passage and answer the four items that follow. YOUR' answers to these items should be based on the passage only.Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greece's sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks' ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.According to the passage, the financial markets in the emerging market economies including India had the adverse impact in recent years due to1. weak global economic prospects.2. uncertainties in the international financial markets.3. sovereign risk concerns in the Euro area.4. bad monsoons and the resultant crop loss.a)1 and 2 onlyb)1, 2 and 3c)2 and 3 onlyd)2, 3 and 4Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions for the following 4 (four) items: Read the following passage and answer the four items that follow. YOUR' answers to these items should be based on the passage only.Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greece's sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks' ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.According to the passage, the financial markets in the emerging market economies including India had the adverse impact in recent years due to1. weak global economic prospects.2. uncertainties in the international financial markets.3. sovereign risk concerns in the Euro area.4. bad monsoons and the resultant crop loss.a)1 and 2 onlyb)1, 2 and 3c)2 and 3 onlyd)2, 3 and 4Correct answer is option 'B'. Can you explain this answer?.
Solutions for Directions for the following 4 (four) items: Read the following passage and answer the four items that follow. YOUR' answers to these items should be based on the passage only.Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greece's sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks' ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.According to the passage, the financial markets in the emerging market economies including India had the adverse impact in recent years due to1. weak global economic prospects.2. uncertainties in the international financial markets.3. sovereign risk concerns in the Euro area.4. bad monsoons and the resultant crop loss.a)1 and 2 onlyb)1, 2 and 3c)2 and 3 onlyd)2, 3 and 4Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Directions for the following 4 (four) items: Read the following passage and answer the four items that follow. YOUR' answers to these items should be based on the passage only.Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greece's sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks' ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.According to the passage, the financial markets in the emerging market economies including India had the adverse impact in recent years due to1. weak global economic prospects.2. uncertainties in the international financial markets.3. sovereign risk concerns in the Euro area.4. bad monsoons and the resultant crop loss.a)1 and 2 onlyb)1, 2 and 3c)2 and 3 onlyd)2, 3 and 4Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions for the following 4 (four) items: Read the following passage and answer the four items that follow. YOUR' answers to these items should be based on the passage only.Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greece's sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks' ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.According to the passage, the financial markets in the emerging market economies including India had the adverse impact in recent years due to1. weak global economic prospects.2. uncertainties in the international financial markets.3. sovereign risk concerns in the Euro area.4. bad monsoons and the resultant crop loss.a)1 and 2 onlyb)1, 2 and 3c)2 and 3 onlyd)2, 3 and 4Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Directions for the following 4 (four) items: Read the following passage and answer the four items that follow. YOUR' answers to these items should be based on the passage only.Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greece's sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks' ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.According to the passage, the financial markets in the emerging market economies including India had the adverse impact in recent years due to1. weak global economic prospects.2. uncertainties in the international financial markets.3. sovereign risk concerns in the Euro area.4. bad monsoons and the resultant crop loss.a)1 and 2 onlyb)1, 2 and 3c)2 and 3 onlyd)2, 3 and 4Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Directions for the following 4 (four) items: Read the following passage and answer the four items that follow. YOUR' answers to these items should be based on the passage only.Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greece's sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks' ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.According to the passage, the financial markets in the emerging market economies including India had the adverse impact in recent years due to1. weak global economic prospects.2. uncertainties in the international financial markets.3. sovereign risk concerns in the Euro area.4. bad monsoons and the resultant crop loss.a)1 and 2 onlyb)1, 2 and 3c)2 and 3 onlyd)2, 3 and 4Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions for the following 4 (four) items: Read the following passage and answer the four items that follow. YOUR' answers to these items should be based on the passage only.Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms since 1991 have led to growing linkages and integration of the Indian economy and its financial system with the global economy. Weak global economic prospects and continuing uncertainties the in international financial markets therefore, have had their impact on the emerging market economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the greater part of the year, with the contagion of Greece's sovereign debt problem spreading to India and other economies by way of higher-than-normal levels of volatility.The funding constraints in international financial markets could impact both the availability and cost of foreign funding for banks and corporates. Since the Indian financial system is bank dominated, banks' ability to withstand stress is critical to overall financial stability. Indian banks, however, remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation, and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management and enhancing skill therefore assume greater significance.Q.According to the passage, the financial markets in the emerging market economies including India had the adverse impact in recent years due to1. weak global economic prospects.2. uncertainties in the international financial markets.3. sovereign risk concerns in the Euro area.4. bad monsoons and the resultant crop loss.a)1 and 2 onlyb)1, 2 and 3c)2 and 3 onlyd)2, 3 and 4Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice UPSC tests.
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