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  1. Home
  2. /Prelims Questions
  3. /Miscellaneous
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Miscellaneous·2015·Easy

'The Global Financial Stability Report finds that the share of portfolio index. statements from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event United States Federal Reserves imminent reversal of its “Quantitative Easing” policy. Which among the following is the most logical and critical inference that can be made from the above passage ?

'The Global Financial Stability Report finds that the share of portfolio index. statements from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event  United States Federal Reserves imminent reversal of its “Quantitative Easing” policy. Which among the following is the most logical and critical inference that can be made from the above passage ?

Options

  1. a.

    Foregin portfolio investments are not good for emerging economies

  2. b.

    Advanced economies undermine the global financial stability

  3. c.

    India should desist from accepting foreign portfolio investments in the future

  4. d.

    Emerging economies are at a risk of shock from advanced economies

    Correct answer

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