The central bank has decreased the CRR from 4.25% to 4% . State its economic value. What will be its impact on inflation.?

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The central bank has decreased the CRR from 4.25% to 4% . State its economic value. What will be its impact on inflation.?

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India really cannot handle tension in West Asia right now.That may seem obvious: after all, any escalation in hostilities between Iran and the United States, after the latter killed top Iranian military commander Qassem Soleimani, will have a huge impact across the region and beyond. Its not for nothing that "World War 3" trended on Twitter on Friday.There are two primary dangers for India, other than the extremely destabilising effects of any outright war in the region.One, there are 8 million Indians living and working in West Asia, the vast majority of whom live in the Arabian Gulf. Conflict would put them all in danger, as it did at the start of the 1990s, when the US went to war with Iraq and New Delhi had to arrange an airlift of more than 110,000 Indian citizens.But even if there isnt all-out conflict, heightened tensions could hurt the economies of the region, and endanger the jobs of many Indians. Already the events of the last few years, including inter-regional conflict between Saudi Arabia and Qatar, employment nationalisation drives in a number of countries and Dubais struggles to recover from economic crisis, have hurt the diaspora.Kerala has already begun coming to terms with the idea that many more will return. A sudden jolt would put pressure on the places Indians return to, and also endanger the $40 billion in remittances India receives from West Asia - more than 50% of all remittances to the country, a key source of foreign exchange.Then there is the question of oil prices. Though international prices have gone up by 4% since the strike on Soleimani, analysts do not currently expect them to get much higher - presuming it is in no ones interests for that to happen and that both the US and Iran will back down from outright conflict.Yet if that presumption is wrong, India will face some difficult times. Although India does not now import much oil from Iran, it is still heavily reliant on the Strait of Hormuz - the tiny span of water through which a quarter of the worlds oil and a third of its natural gas travels. Higher oil prices would automatically mean inflation in India, where analysts are already worried about rising food prices.Even if Indias economy were on a more stable footing, conflict in the region would be dangerous. But the current tensions, coming as they do when the Indian economy seems poised on a precipice, should be even more alarming for policymakers.Q. Which one of the following CANNOT be inferred from the information given in the fifth paragraph?

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India really cannot handle tension in West Asia right now.That may seem obvious: after all, any escalation in hostilities between Iran and the United States, after the latter killed top Iranian military commander Qassem Soleimani, will have a huge impact across the region and beyond. Its not for nothing that "World War 3" trended on Twitter on Friday.There are two primary dangers for India, other than the extremely destabilising effects of any outright war in the region.One, there are 8 million Indians living and working in West Asia, the vast majority of whom live in the Arabian Gulf. Conflict would put them all in danger, as it did at the start of the 1990s, when the US went to war with Iraq and New Delhi had to arrange an airlift of more than 110,000 Indian citizens.But even if there isnt all-out conflict, heightened tensions could hurt the economies of the region, and endanger the jobs of many Indians. Already the events of the last few years, including inter-regional conflict between Saudi Arabia and Qatar, employment nationalisation drives in a number of countries and Dubais struggles to recover from economic crisis, have hurt the diaspora.Kerala has already begun coming to terms with the idea that many more will return. A sudden jolt would put pressure on the places Indians return to, and also endanger the $40 billion in remittances India receives from West Asia - more than 50% of all remittances to the country, a key source of foreign exchange.Then there is the question of oil prices. Though international prices have gone up by 4% since the strike on Soleimani, analysts do not currently expect them to get much higher - presuming it is in no ones interests for that to happen and that both the US and Iran will back down from outright conflict.Yet if that presumption is wrong, India will face some difficult times. Although India does not now import much oil from Iran, it is still heavily reliant on the Strait of Hormuz - the tiny span of water through which a quarter of the worlds oil and a third of its natural gas travels. Higher oil prices would automatically mean inflation in India, where analysts are already worried about rising food prices.Even if Indias economy were on a more stable footing, conflict in the region would be dangerous. But the current tensions, coming as they do when the Indian economy seems poised on a precipice, should be even more alarming for policymakers.Q. Which one of the following CANNOT be inferred from the information given in the fifth paragraph?

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India really cannot handle tension in West Asia right now.That may seem obvious: after all, any escalation in hostilities between Iran and the United States, after the latter killed top Iranian military commander Qassem Soleimani, will have a huge impact across the region and beyond. Its not for nothing that "World War 3" trended on Twitter on Friday.There are two primary dangers for India, other than the extremely destabilising effects of any outright war in the region.One, there are 8 million Indians living and working in West Asia, the vast majority of whom live in the Arabian Gulf. Conflict would put them all in danger, as it did at the start of the 1990s, when the US went to war with Iraq and New Delhi had to arrange an airlift of more than 110,000 Indian citizens.But even if there isnt all-out conflict, heightened tensions could hurt the economies of the region, and endanger the jobs of many Indians. Already the events of the last few years, including inter-regional conflict between Saudi Arabia and Qatar, employment nationalisation drives in a number of countries and Dubais struggles to recover from economic crisis, have hurt the diaspora.Kerala has already begun coming to terms with the idea that many more will return. A sudden jolt would put pressure on the places Indians return to, and also endanger the $40 billion in remittances India receives from West Asia - more than 50% of all remittances to the country, a key source of foreign exchange.Then there is the question of oil prices. Though international prices have gone up by 4% since the strike on Soleimani, analysts do not currently expect them to get much higher - presuming it is in no ones interests for that to happen and that both the US and Iran will back down from outright conflict.Yet if that presumption is wrong, India will face some difficult times. Although India does not now import much oil from Iran, it is still heavily reliant on the Strait of Hormuz - the tiny span of water through which a quarter of the worlds oil and a third of its natural gas travels. Higher oil prices would automatically mean inflation in India, where analysts are already worried about rising food prices.Even if Indias economy were on a more stable footing, conflict in the region would be dangerous. But the current tensions, coming as they do when the Indian economy seems poised on a precipice, should be even more alarming for policymakers.Q. Which one of the following best expresses the main idea of the passage?

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India really cannot handle tension in West Asia right now.That may seem obvious: after all, any escalation in hostilities between Iran and the United States, after the latter killed top Iranian military commander Qassem Soleimani, will have a huge impact across the region and beyond. Its not for nothing that "World War 3" trended on Twitter on Friday.There are two primary dangers for India, other than the extremely destabilising effects of any outright war in the region.One, there are 8 million Indians living and working in West Asia, the vast majority of whom live in the Arabian Gulf. Conflict would put them all in danger, as it did at the start of the 1990s, when the US went to war with Iraq and New Delhi had to arrange an airlift of more than 110,000 Indian citizens.But even if there isnt all-out conflict, heightened tensions could hurt the economies of the region, and endanger the jobs of many Indians. Already the events of the last few years, including inter-regional conflict between Saudi Arabia and Qatar, employment nationalisation drives in a number of countries and Dubais struggles to recover from economic crisis, have hurt the diaspora.Kerala has already begun coming to terms with the idea that many more will return. A sudden jolt would put pressure on the places Indians return to, and also endanger the $40 billion in remittances India receives from West Asia - more than 50% of all remittances to the country, a key source of foreign exchange.Then there is the question of oil prices. Though international prices have gone up by 4% since the strike on Soleimani, analysts do not currently expect them to get much higher - presuming it is in no ones interests for that to happen and that both the US and Iran will back down from outright conflict.Yet if that presumption is wrong, India will face some difficult times. Although India does not now import much oil from Iran, it is still heavily reliant on the Strait of Hormuz - the tiny span of water through which a quarter of the worlds oil and a third of its natural gas travels. Higher oil prices would automatically mean inflation in India, where analysts are already worried about rising food prices.Even if Indias economy were on a more stable footing, conflict in the region would be dangerous. But the current tensions, coming as they do when the Indian economy seems poised on a precipice, should be even more alarming for policymakers.Q. Which one of the following best expresses the main idea of the passage?

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Directions: Read the following case study and answer the questionsPrime Minister Narendra Modi ’s second budget in seven months disappointed investors who were hoping for big-bang stimulus to revive growth in Asia’s third-largest economy. The fiscal plan delivered by Finance Minister Nirmala Sitharaman proposed tax reductions for individuals and wider deficit targets, but failed to provide specific steps to fix a struggling financial sector, improve infrastructure and create jobs. Stocks slumped, reflecting the subdued sentiment.“Far from being a game changer, the budget provides little in terms of short-term growth stimulus,” said Priyanka Kishore, head of India and South-East Asia economics at Oxford Economics Ltd. in Singapore. “While income tax cuts will provide some relief on the consumption front, the multiplier effect is low and the overall stance of the budget is not expansionary.”The focus now shifts to the Reserve Bank of India’s interest rate decision on February 6, 2020. Flowever, having already cut interest rates five times last year and with inflation exceeding 7 per cent, well above the central bank’s target, there’s limited scope for Governor Shaktikanta Das to ease more.Q. What will be the impact on the overall money supply if government reduces income tax slabs?

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The central bank has decreased the CRR from 4.25% to 4% . State its economic value. What will be its impact on inflation.?

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