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      Question

      What is the purpose of External Commercial

      Borrowings (ECB)?
      A To meet the budget deficit, state governments can borrow from funds from other states Correct Answer Incorrect Answer
      B Indian corporations and PSUs can access foreign money Correct Answer Incorrect Answer
      C Indian government can borrow from IMF Correct Answer Incorrect Answer
      D Commercial Banks in India can borrow funds from World Bank Correct Answer Incorrect Answer
      E All of the above Correct Answer Incorrect Answer

      Solution

      ECBs include commercial bank loans, buyers' credit, suppliers' credit, securitised instruments, commercial borrowings from the private sector window of multilateral financial Institutions. ECBs cannot be used for investment in stock market or speculation in real estate.

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