Tag: Financial Stability

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Analyse the risks posed by AI-driven cyber threats to the global monetary system. Examine measures required to strengthen resilience.

Topic: Challenges to internal security through communication networks, Q5. Analyse the risks posed by AI-driven cyber threats to the global monetary system. Examine measures required to strengthen resilience. (10 M) Difficulty Level: Medium Reference: TH Why the question To evaluate understanding of emerging technological risks to financial systems and assess preparedness of global monetary governance …

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“Deepening capital markets is essential for sustainable economic growth, but it also amplifies systemic risks.” Discuss the role of capital markets in economic development. Examine the risks associated with excessive financialization.

Topic: Capital Markets & Money Markets Q5. “Deepening capital markets is essential for sustainable economic growth, but it also amplifies systemic risks.” Discuss the role of capital markets in economic development. Examine the risks associated with excessive financialization. (10 M) Difficulty Level: Medium Reference: InsightsIAS Why the question Capital market deepening and rising financialization have …

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“In an interconnected world economy, regional conflicts increasingly generate systemic financial risks.” Examine this statement. Assess the impact of such conflicts on global investment flows and interest rates. Outline policy measures to mitigate these risks.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q5. “In an interconnected world economy, regional conflicts increasingly generate systemic financial risks.” Examine this statement. Assess the impact of such conflicts on global investment flows and interest rates. Outline policy measures to mitigate these risks. (15 M) Difficulty Level: …

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What is meant by de-dollarisation in the global economy? Identify the key economic and financial factors driving this trend. Bring out its implications for global financial stability

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q4. What is meant by de-dollarisation in the global economy? Identify the key economic and financial factors driving this trend. Bring out its implications for global financial stability. (15 M) Difficulty Level: Medium Reference: IE Why the question Recent shifts …

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Trend and Progress of Banking in India 2024-25 Report

Source:  LM Subject: Economics Context: RBI’s latest “Trend and Progress of Banking in India” report flags a resilient banking system with multi-decadal low NPAs, strong balance-sheet expansion and policy push for safer, more inclusive finance. About Trend and Progress of Banking in India 2024-25 Report: What it is? An annual RBI flagship assessment of banking …

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What do you understand by regulatory capture in the banking sector? Critically examine how it undermines financial stability.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q5. What do you understand by regulatory capture in the banking sector? Critically examine how it undermines financial stability. (10 M) Difficulty Level: Medium Reference: NIE Why the question Global bank failures (Credit Suisse, US regional banks) and lobbying against …

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A credible insolvency framework is vital for sustaining economic growth in a credit-dependent economy. Examine the macroeconomic importance of timely resolution. Analyse how creditor rights and debtor protection can be balanced. Suggest key priorities for future reforms.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q5. A credible insolvency framework is vital for sustaining economic growth in a credit-dependent economy. Examine the macroeconomic importance of timely resolution. Analyse how creditor rights and debtor protection can be balanced. Suggest key priorities for future reforms. (15 M) …

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Indian capital markets are increasingly driven by speculative flows, not fundamentals. Critically assess this trend. Discuss its implications for financial stability. Suggest policy safeguards to insulate the real economy.

Topic: Capital Markets & Money Markets Q6. Indian capital markets are increasingly driven by speculative flows, not fundamentals. Critically assess this trend. Discuss its implications for financial stability. Suggest policy safeguards to insulate the real economy. (15 M) Difficulty Level: Medium Reference: InsightsIAS Why the question: The growing disconnect between stock market performance and economic …

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Explain the key reasons behind the sustained decline in bank credit growth in recent times. Suggest measures to ensure credit growth without compromising financial stability.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q5. Explain the key reasons behind the sustained decline in bank credit growth in recent times. Suggest measures to ensure credit growth without compromising financial stability. (10 M) Difficulty Level: Medium Reference: TH Why the question: RBI’s March 2025 data …

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Financial Stability and Development Council (FSDC)

General Studies-3 Topics Covered: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.   Context: 24th meeting of Financial Stability and Development Council (FSDC). The 24th meeting deliberated on various mandates of the FSDC such as financial stability, financial sector development, inter-regulatory coordination, financial literacy, financial inclusion, and macro prudential …

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