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UPSC 2020: If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India ?
(a)1 only
(b)1 and 2 only
(c)3 only
(d)1, 2 and 3
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Not attemptedCorrect Answer: (a) 1 only
Relying less on volatile short-term external borrowing cushions an economy during a global financial crisis. Opening the market to more foreign banks or adopting full capital-account convertibility would heighten, not reduce, external vulnerability. Hence only statement 1 is advisable. ([insightsonindia.com](https://www.insightsonindia.com/2020/10/10/final-key-with-detailed-solutions-upsc-civil-services-preliminary-exam-2020/))
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Frequently Asked Questions
What is the correct answer to this UPSC 2020 Indian Economy question?▼
The correct answer is option (a): 1 only. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this External Sector & Balance Of Payments question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2020, GS Paper 1, as Question 49. It falls under Indian Economy > External Sector & Balance Of Payments.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from External Sector & Balance Of Payments?▼
UPSC has asked 49 questions from External Sector & Balance Of Payments (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.