Q1. The Prime Minister and the Finance Ministry is putting pressure on you, the governor of RBI, to do the following monetary policy changes

a. Reduce the SLR to 20%

b. Do away with CRR altogether, i.e. make CRR 0 %

The government would make the appropriate legislation, consensus building and other required formalities. What would be your response to this, give reasons.

Q2. The year is 1960, and the Golden Quadrilateral Project has just been completed. Now get back to the present and analyze the impact that it would have had on the current financial sector.

Q3. “Economies that tend to have bigger non-plan expenditure cannot register high growth rates”. Justify / Negate using Indian economy as a case.

Q4. “The Finance Commission of India should be held responsible for the revenue and subsequent fiscal deficit in the budget of the nation”. Justify / Negate giving suitable reasons.

Q5. The Soviet Union lasted for 69 years (1922-1991). Hitler’s Third Reich lasted for a mere 12 (1933-1945). Both were ruled with an iron fist, both experienced tremendous economic growth and their eventual fall changed the world for ever. China has been ruled by a quasi-dictatorial regime for over 59 years. It too has been experiencing tremendous economic growth for the last several years. Taking the analogy further, it implies that there is an impending and /or inevitable fall of the Chinese republic.

Do you agree with this argument or is there a flaw in the comparison?

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