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The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event of United States Federal Reserve's imminent reversal of its "Quantitative Easing" policy.
Q. Which among the following is the most rational and critical inference that can be made from the above passage?
- a)Foregin portfolio investments are not good for emerging economies.
- b)Advanced economies undermine the global financial stability.
- c)India should desist from accepting foreign portfolio investments in the future.
- d)Emerging economies are at a risk of shock from advanced economies.
Correct answer is option 'D'. Can you explain this answer?
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The Global Financial Stability Report finds that the share of portfoli...
The correct option is D.
It is clear from the following lines ‘The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent’.
It is clear from the following lines ‘The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent’.
Most Upvoted Answer
The Global Financial Stability Report finds that the share of portfoli...
Emerging economies are at a risk of shock from advanced economies:
The passage highlights the significant increase in portfolio investments from advanced economies in emerging economies, particularly in debt and equity markets. This trend poses a potential threat to the stability of emerging economies, including India, due to the following reasons:
Dependence on foreign portfolio investments:
- Emerging economies, including India, have become increasingly reliant on foreign portfolio investments to meet their financing needs.
- A sudden withdrawal of these investments, especially in the event of policy changes by advanced economies like the United States, could lead to market disruptions and financial instability.
Impact of global financial shocks:
- The interconnected nature of global financial markets means that shocks in advanced economies can quickly transmit to emerging economies.
- Any adverse policy changes or economic developments in advanced economies could trigger a chain reaction that destabilizes emerging economies, including India.
Need for policy preparedness:
- Indian policymakers need to be vigilant and prepared for potential shocks emanating from advanced economies.
- Strengthening domestic financial systems, increasing resilience to external shocks, and diversifying sources of funding can help mitigate the risks associated with foreign portfolio investments.
Conclusion:
In conclusion, the increasing share of portfolio investments from advanced economies in emerging economies poses a significant risk to the stability of countries like India. It is essential for policymakers to closely monitor these developments and take proactive measures to safeguard their economies from external shocks.
The passage highlights the significant increase in portfolio investments from advanced economies in emerging economies, particularly in debt and equity markets. This trend poses a potential threat to the stability of emerging economies, including India, due to the following reasons:
Dependence on foreign portfolio investments:
- Emerging economies, including India, have become increasingly reliant on foreign portfolio investments to meet their financing needs.
- A sudden withdrawal of these investments, especially in the event of policy changes by advanced economies like the United States, could lead to market disruptions and financial instability.
Impact of global financial shocks:
- The interconnected nature of global financial markets means that shocks in advanced economies can quickly transmit to emerging economies.
- Any adverse policy changes or economic developments in advanced economies could trigger a chain reaction that destabilizes emerging economies, including India.
Need for policy preparedness:
- Indian policymakers need to be vigilant and prepared for potential shocks emanating from advanced economies.
- Strengthening domestic financial systems, increasing resilience to external shocks, and diversifying sources of funding can help mitigate the risks associated with foreign portfolio investments.
Conclusion:
In conclusion, the increasing share of portfolio investments from advanced economies in emerging economies poses a significant risk to the stability of countries like India. It is essential for policymakers to closely monitor these developments and take proactive measures to safeguard their economies from external shocks.
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The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event of United States Federal Reserve's imminent reversal of its "Quantitative Easing" policy.Q. Which among the following is the most rational and critical inference that can be made from the above passage?a)Foregin portfolio investments are not good for emerging economies. b)Advanced economies undermine the global financial stability.c)India should desist from accepting foreign portfolio investments in the future.d)Emerging economies are at a risk of shock from advanced economies.Correct answer is option 'D'. Can you explain this answer?
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The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event of United States Federal Reserve's imminent reversal of its "Quantitative Easing" policy.Q. Which among the following is the most rational and critical inference that can be made from the above passage?a)Foregin portfolio investments are not good for emerging economies. b)Advanced economies undermine the global financial stability.c)India should desist from accepting foreign portfolio investments in the future.d)Emerging economies are at a risk of shock from advanced economies.Correct answer is option 'D'. 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 The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event of United States Federal Reserve's imminent reversal of its "Quantitative Easing" policy.Q. Which among the following is the most rational and critical inference that can be made from the above passage?a)Foregin portfolio investments are not good for emerging economies. b)Advanced economies undermine the global financial stability.c)India should desist from accepting foreign portfolio investments in the future.d)Emerging economies are at a risk of shock from advanced economies.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event of United States Federal Reserve's imminent reversal of its "Quantitative Easing" policy.Q. Which among the following is the most rational and critical inference that can be made from the above passage?a)Foregin portfolio investments are not good for emerging economies. b)Advanced economies undermine the global financial stability.c)India should desist from accepting foreign portfolio investments in the future.d)Emerging economies are at a risk of shock from advanced economies.Correct answer is option 'D'. Can you explain this answer?.
The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event of United States Federal Reserve's imminent reversal of its "Quantitative Easing" policy.Q. Which among the following is the most rational and critical inference that can be made from the above passage?a)Foregin portfolio investments are not good for emerging economies. b)Advanced economies undermine the global financial stability.c)India should desist from accepting foreign portfolio investments in the future.d)Emerging economies are at a risk of shock from advanced economies.Correct answer is option 'D'. 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 The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event of United States Federal Reserve's imminent reversal of its "Quantitative Easing" policy.Q. Which among the following is the most rational and critical inference that can be made from the above passage?a)Foregin portfolio investments are not good for emerging economies. b)Advanced economies undermine the global financial stability.c)India should desist from accepting foreign portfolio investments in the future.d)Emerging economies are at a risk of shock from advanced economies.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event of United States Federal Reserve's imminent reversal of its "Quantitative Easing" policy.Q. Which among the following is the most rational and critical inference that can be made from the above passage?a)Foregin portfolio investments are not good for emerging economies. b)Advanced economies undermine the global financial stability.c)India should desist from accepting foreign portfolio investments in the future.d)Emerging economies are at a risk of shock from advanced economies.Correct answer is option 'D'. Can you explain this answer?.
Solutions for The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event of United States Federal Reserve's imminent reversal of its "Quantitative Easing" policy.Q. Which among the following is the most rational and critical inference that can be made from the above passage?a)Foregin portfolio investments are not good for emerging economies. b)Advanced economies undermine the global financial stability.c)India should desist from accepting foreign portfolio investments in the future.d)Emerging economies are at a risk of shock from advanced economies.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event of United States Federal Reserve's imminent reversal of its "Quantitative Easing" policy.Q. Which among the following is the most rational and critical inference that can be made from the above passage?a)Foregin portfolio investments are not good for emerging economies. b)Advanced economies undermine the global financial stability.c)India should desist from accepting foreign portfolio investments in the future.d)Emerging economies are at a risk of shock from advanced economies.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event of United States Federal Reserve's imminent reversal of its "Quantitative Easing" policy.Q. Which among the following is the most rational and critical inference that can be made from the above passage?a)Foregin portfolio investments are not good for emerging economies. b)Advanced economies undermine the global financial stability.c)India should desist from accepting foreign portfolio investments in the future.d)Emerging economies are at a risk of shock from advanced economies.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event of United States Federal Reserve's imminent reversal of its "Quantitative Easing" policy.Q. Which among the following is the most rational and critical inference that can be made from the above passage?a)Foregin portfolio investments are not good for emerging economies. b)Advanced economies undermine the global financial stability.c)India should desist from accepting foreign portfolio investments in the future.d)Emerging economies are at a risk of shock from advanced economies.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event of United States Federal Reserve's imminent reversal of its "Quantitative Easing" policy.Q. Which among the following is the most rational and critical inference that can be made from the above passage?a)Foregin portfolio investments are not good for emerging economies. b)Advanced economies undermine the global financial stability.c)India should desist from accepting foreign portfolio investments in the future.d)Emerging economies are at a risk of shock from advanced economies.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
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