Which of the following statements are the defects of Indian Money Market? 1. Profitable Investment 2.…
Two structural defects of the Indian Money Market are the existence of a sharp dichotomy between the organized banking sector and the unorganized indigenous sector (2), and…
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Which of the following statements are the defects of Indian Money Market?
1. Profitable Investment
2. Dichotomy in Indian Money Market
3. Financing Industry
4. Diversity in interest rates
Answer and explanation
Correct answer D
Two structural defects of the Indian Money Market are the existence of a sharp dichotomy between the organized banking sector and the unorganized indigenous sector (2), and the wide diversity/disparity in prevailing interest rates across different segments due to imperfect integration (4). Profitable investment (1) and financing industry (3) are positive functions rather than defects.
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UGC NET Commerce