New NABARD Grade A : How to prepare ESI for Prelims & Mains- Sources & Strategy
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Question

The RBI's decision to keep FPI limits unchanged for government securities primarily aims to:

A Encourage domestic investment Correct Answer Incorrect Answer
B Stabilize the financial market Correct Answer Incorrect Answer
C Increase foreign investment drastically Correct Answer Incorrect Answer
D Diversify the types of available securities Correct Answer Incorrect Answer
E Stimulate rapid economic growth Correct Answer Incorrect Answer

Solution

By maintaining the FPI limits, the RBI aims to provide stability in the financial markets, ensuring there is no abrupt increase or decrease in foreign investments that could destabilize the market.

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