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[WpProQuiz 52]
6/7.
3 of 7 questions answered correctly
Your time: 00:03:35
5/7
Rbi has increased the cap from 500gm in sovereign gold bond scheme
http://m.businesstoday.in/story/sovereign-gold-bond-scheme-heres-all-you-need-to-know-before-subscribing/1/256156.html
http://pib.nic.in/newsite/PrintRelease.aspx?relid=169104
http://pib.nic.in/newsite/PrintRelease.aspx?relid=169104
3/7……………..
4/7
Can anyone explain Q5 how it help in reducing sovereign debt burden!!
Follow this link…. You will get clear picture…
http://www.investopedia.com/articles/investing/090215/3-reasons-why-countries-devalue-their-currency.asp
but if 1 million dollar is to be paid (assuming dollar to be the local currency), how will exchange rate of dollar and say rupee/pound would have any effect on 1 million dollar payment.
It reduces sovereign debt burden. Little tricky. As for example if an xyz country has a debt burden of 10 million dollars. Now if the xyz country devalued their currency to its half, the same amount will reduce to 5 lakhs only for that country… I hope this will make your doubt clear..
Suppose 1$=50 rupee exchange rate
India has 50rupee debt to USA now India has devalued its currency to 1$=60….. Then it has to pay now 60. May b I m wrong!! But thanx
Suppose India has a debt of Rs 1000. As you say exchange rate is 1$=50. Divide 1000 by 50. It is 200 times India’s exchange rate. Now India devalued its currency and exchange rate becomes 1$=60. Now divide 1000/60. It is only 160 times its exchange rate. This is how devaluation helps reduce debt.it reduces the amount in respect to the current economy.
5/7
3/7
3/7
3/7
5/7 …. Thanks
4/7
not happy. 5th samjh do koi
one possible explanation of 5th c part is.
currency devaluation-> imports replaced by domestic produce as imports become costly-> but inflation increases as domestic produce costlier than earlier imported cost (had domestic produce been cheaper than imports previously then wouldn’t have been importing) –> currency looses value locally too–> debt financing becomes easier.
i might be wrong. feel free to correct peeps!
4/6
4/7 only
4/7
1 answer is wrong since Rbi can only direct banking company to begin insolvency proceedings but cant begin the proceedings itself. Kindly check.
Also in 5 soverign debt bonds if issued in foreign currency would become expensive after devaluation. Check this also
having the same doubt about initiating processings against banks as RBi can only direct..and not initiate itself…
6/7
4/7
2 /7
4/7
5/7
3 of 7 questions answered correctly
Your time: 00:03:21
3 /7
4/7
4/7
3 of 7 questions answered correctly
5/7
3 of 7 questions answered correctly
Your time: 00:02:27
4/6