Question
In the context of the External Commercial Borrowings,
consider the following statements: 1. External Commercial Borrowings constitute the largest component of India’s external debt. 2. External Commercial Borrowings facilitate investments in the Indian stock markets. Which of the statements given above is/are incorrect?Solution
● Statement 1 is correct: According to Status Report on India’s External Debt 2021-22, released by The External Debt Management Unit (EDMU) India’s external debt stood at 620.7 billion USD by the end-March 2022. The major component of which was the External Commercial Borrowings followed by the NRI deposits. External Commercial Borrowings or ECBs are a part of the Capital Account of the Balance of Payment (BOP). ECBs are loans availed by Indian corporations and public sector Undertakings by foreign entities. ● Statement 2 is incorrect: The loans availed cannot be used for the investment in the Indian stock market and the speculation activities in the real estate sector. The regulation of the External Commercial Borrowings is done by the Ministry of Finance and the Reserve Bank of India.
If 28000 units are introduced in a process and normal loss is 5% of input, Closing WIP is 6000 units which is 40% complete and rest of the good units ar...
Commission received in advance is of the nature of
JAM Trinity has played a significant role in the process of inclusive development in our country. Which of the following correctly describes JAM Trinity?
As per recommendations given by the Working Group on Digital Lending, which organisation should be given authority as a member or need-based invitee con...
Which type of control ensures that monitoring and corrective action occur simultaneously while the activity is being performed?
Banks are expected to identify connected counterparties based on economic interdependence when total exposure exceeds what percentage of the eligible ca...
Which of the following statements is true about Treasury Bills (T-Bills)?
Under the RBI’s guidelines, what is the maximum exposure to an individual borrower for UCBs with Tier 1 capital?
Depreciation is charged on __________ as per the ___________ of accounting.
What does the term "IS curve" represent in the ISLM model?
Relevant for Exams:
