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3. GS Mains Test Series Questions

 

1. In the context of Indian Economy, it is said that there are three macro-economic challenges -- managing growth inflation, mitigating vulnerability of the external factors and managing the political economy of fiscal consolidation. Discuss.Answer:2. What do you understand by Monetary Policy Trilemma? How can it be resolved in Indian context?Answer:3. Monetary policy transmission in India has largely remained ineffective. What are the reasons behind this? Explain what marginal cost-based lending rate (MCLR) is and how it can affect monetary policy transmission in India.Answer:4. Examine the causes of rupee depreciation and its impact on the Indian economy. Also discuss the steps taken by the Government and RBI to stem its slide.Answer:Impact of rupee depreciation:Steps taken up by RBI and Government:5. RBI has recently classified some banks as 'Domestic Systemically Important Banks' (D- SIBs). What is the rationale behind this move? Examine the possible implications of this step.Answer: