UPSC Prelims 2020 · GS Paper 1 · Q9

Economy

Medium · Capital Account Policy and Financial Crisis Insulation

Which one of the following policy stances would genuinely help insulate India's economy from the impact of a future global financial crisis?

1. Not depending heavily on short term foreign borrowings, or 'hot money', to finance the economy

2. Allowing a larger number of foreign banks to freely open branches across the country

3. Moving quickly towards full convertibility of the rupee on the capital account

Select the correct answer using the code given below.