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? 1) Not depending on short-term foreign borrowings 2) Opening up to more foreign banks 3) Maintaining full capital account convertibility Select the correct answer using the code given below:

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CollectorBabu · Accepted Answer

Correct Answer: 1 only. In case of a global financial crisis what can save India is. Statement 1 Avoiding Short Term Loan From Foreign Banks as in a Financial Crisis it would be tough to pay off. Statement 2 If we resort to more foreign banks there will be a problem they might restrict their policies in a global financial crisis. Statement 3 Full capital account convertibility will not be an option as we have a devalued currency. So Correct Answer is A.

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