Consider the following actions which the Government can take:1.Devaluing the domestic currency.2.Reduction in the export subsidy.3.Adopting suitable policies which attract greater FDI and more funds from FIIs.4.Which of the above action/actions can help in reducing the current account deficit?

For Competitive Exams

Consider the following actions which the Government can take:
1.Devaluing the domestic currency.
2.Reduction in the export subsidy.
3.Adopting suitable policies which attract greater FDI and more funds from FIIs.
4.Which of the above action/actions can help in reducing the current account deficit?

1 and 2

2 and 3

3 only

1 and 3

Next Question

A rapid increase in the rate of inflation is sometimes attributed to the "base effect". What is "base effect"?
(a.) It is the impact of drastic deficiency in supply due to failure of crops
(b.) It is the impact of the surge in demand due to rapid economic growth
(c.) It is the impact of the price levels of previous year on the calculation of inflation rate
(d.)None of the statements (a), (b) and (c) 'given above is correct in this context
Why is the offering of "teaser loans" by commercial banks a cause of economic concern?
1.The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
2.In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.
3.Which of the statements given above is/are correct?

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