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Which of the following is/are the objectives of the Debt Management Strategy of Government of India?
1. To mobilise borrowings at low cost while keeping the risks at prudent levels.
2. To maintain a stable and sustainable debt structure so as to ensure financial stability.
3. Development of a well-functioning domestic bond market.
Select the correct answer using the code given below.
  • a)
    1 only
  • b)
    1 and 2 only
  • c)
    2 and 3 only
  • d)
    1, 2 and 3 
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which of the following is/are the objectives of the Debt Management St...
Objectives of the Debt Management Strategy of Government of India
The Debt Management Strategy (DMS) of the Government of India aims to enhance the efficiency and sustainability of public debt management. The three key objectives outlined in the strategy are as follows:
1. Mobilise Borrowings at Low Cost
- The primary aim is to borrow funds at the lowest possible cost, ensuring that the government's financial burden is minimized.
- This involves actively managing the debt portfolio to avoid high-interest rates and unnecessary expenditures on servicing debt.
2. Maintain a Stable and Sustainable Debt Structure
- A stable debt structure is crucial for maintaining financial stability.
- The government aims to ensure that the debt-to-GDP ratio remains at sustainable levels, which helps in maintaining investor confidence and economic stability.
3. Development of a Well-Functioning Domestic Bond Market
- The DMS promotes the development of a robust domestic bond market, which is essential for providing the government with a reliable source of funding.
- A well-functioning bond market enhances liquidity, encourages foreign investment, and allows for better pricing of risks associated with government bonds.
Conclusion
Given these objectives, the correct answer is option 'D' (1, 2, and 3), as all three points accurately reflect the goals of the Debt Management Strategy of the Government of India. The strategy is designed to ensure that borrowing remains efficient and sustainable while fostering a strong domestic financial market.
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Which of the following is/are the objectives of the Debt Management Strategy of Government of India?1. To mobilise borrowings at low cost while keeping the risks at prudent levels.2. To maintain a stable and sustainable debt structure so as to ensure financial stability.3. Development of a well-functioning domestic bond market.Select the correct answer using the code given below.a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following is/are the objectives of the Debt Management Strategy of Government of India?1. To mobilise borrowings at low cost while keeping the risks at prudent levels.2. To maintain a stable and sustainable debt structure so as to ensure financial stability.3. Development of a well-functioning domestic bond market.Select the correct answer using the code given below.a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is/are the objectives of the Debt Management Strategy of Government of India?1. To mobilise borrowings at low cost while keeping the risks at prudent levels.2. To maintain a stable and sustainable debt structure so as to ensure financial stability.3. Development of a well-functioning domestic bond market.Select the correct answer using the code given below.a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer?.
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