What are the primary reasons behind the surge in debt servicing costs for developing countries?
- A) Currency devaluation and low borrowing rates
- B) Rising global interest rates and increased borrowing during the COVID-19 pandemic
- C) Declining trade revenues and reduced foreign investments
- D) Geopolitical tensions and trade war
According to the World Bank, what is India's projected debt-to-GDP ratio for FY26/27?
- A) 78%
- B) 80%
- C) 82%
- D) 85%
Which organization has raised concerns about India’s government debt vulnerabilities?
- A) World Economic Forum
- B) International Monetary Fund (IMF)
- C) United Nations Development Programme (UNDP)
- D) Reserve Bank of India (RBI)
What medium-term projection has the IMF made about India’s general government debt?
- A) It will decline below 70% of GDP
- B) It may exceed 100% of GDP
- C) It will stabilize at 85% of GDP
- D) It will remain constant at 90% of GDP
What significant economic challenge did India face in 1991?
- A) Hyperinflation crisis
- B) Balance of payments deficit
- C) Stock market collapse
- D) Agricultural recession
What action did India take during the 1991 economic crisis to secure foreign exchange?
- A) Issued sovereign bonds
- B) Devalued its currency
- C) Pledged its gold reserves
- D) Took a loan from the World Trade Organization
Which key economic indicator suggests India's robust performance despite global challenges, as highlighted by the World Bank?
- A) High export growth rates
- B) Stable inflation levels
- C) Healthy GDP growth
- D) Declining unemployment rates
What does the Indian government’s fiscal consolidation plan aim to achieve?
- A) Increase public debt levels
- B) Boost foreign direct investment
- C) Reduce the debt-to-GDP ratio
- D) Expand fiscal deficits
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