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Which of the following methods is not used for financing CAD (Current Account Deficit)?
  • a)
    Easing restrictions on external commercial borrowing by corporates
  • b)
    Liberalising FDI
  • c)
    Contracting the limits for foreign investment in corporate debt
  • d)
    Expanding the limits for foreign investment government debt
  • e)
    None of these
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which of the following methods is not used for financing CAD (Current...
Even as the CAD has been high, it could be financed because of a combination of 'push' and 'pull' factors.
On the push side is the amount of surplus liquidity in the global system consequent upon the extraordinary monetary stimulus provided by advanced economy central banks.
On the pull side are the measures taken by India to attract capital flows such as liberalising FDI, expanding the limits for foreign investment in corporate debt and government debt, and easing restrictions on external commercial borrowing by corporates.
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Which of the following methods is not used for financing CAD (Current Account Deficit)?a)Easing restrictions on external commercial borrowing by corporatesb)Liberalising FDIc)Contracting the limits for foreign investment in corporate debtd)Expanding the limits for foreign investment government debte)None of theseCorrect answer is option 'C'. Can you explain this answer?
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Which of the following methods is not used for financing CAD (Current Account Deficit)?a)Easing restrictions on external commercial borrowing by corporatesb)Liberalising FDIc)Contracting the limits for foreign investment in corporate debtd)Expanding the limits for foreign investment government debte)None of theseCorrect answer is option 'C'. Can you explain this answer? for Banking Exams 2024 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about Which of the following methods is not used for financing CAD (Current Account Deficit)?a)Easing restrictions on external commercial borrowing by corporatesb)Liberalising FDIc)Contracting the limits for foreign investment in corporate debtd)Expanding the limits for foreign investment government debte)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Banking Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following methods is not used for financing CAD (Current Account Deficit)?a)Easing restrictions on external commercial borrowing by corporatesb)Liberalising FDIc)Contracting the limits for foreign investment in corporate debtd)Expanding the limits for foreign investment government debte)None of theseCorrect answer is option 'C'. Can you explain this answer?.
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