Question
If the fiscal deficit of an economy be 3% of GDP and if
the current account deficit also be 3% of GDP in a particular year for that economy, then its aggregate saving must be equal to aggregate investment. The above statement isSolution
The given statement is true. Fiscal deficit is equal to the borrowings made by the government and current account deficit signifies the excess of imports over exports. Borrowings of government will increase money supply by 3% and the current account deficit will decrease money supply by 3%. So, the economy will be at equilibrium and AD = AS or S = I.
As per the Large exposure framework, banks can have a maximum exposure up to 20% of ______, to a single borrower.
Lenders customarily analyze the creditworthiness of borrower by analysing the 6C’s of Credit, which are:
In which of the following situations is it advisable for an investor to buy a bond?
SWAMIH Fund has played an instrumental role in providing affordable homes to many. It has clocked 20000 mark since inception. What does the “W” sta...
Which of the following is the correct sequence of steps in the communication process?
Which instrument represents the ownership of a company in the capital market?
Which account in the BOP includes transactions related to currently produced goods and services?
What is the maximum number of angel investors that are allowed in an AIF - Angel fund?
What action should lenders take when a stressed loan is transferred to an ARC at a price below the Net Book Value (NBV)?
Which of the following is a short-term source of funding?
