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Preliminary exam CSAT May 17,2024

1. Read the following passage and answer the four items that follow. YOUR' answers to these items
should be based on the passage only.
Passage
Financial markets in India have acquired greater depth and liquidity over the years. Steady reforms
since 1991 have led to growing linkages and integration of the Indian economy and its financial
system with the global economy. Weak global economic prospects and continuing uncertainties the
in international financial markets therefore, have had their impact on the emerging market
economies. Sovereign risk concerns, particularly in the Euro area, affected financial markets for the
greater part of the year, with the contagion of Greece's sovereign debt problem spreading to India
and other economies by way of higher-than-normal levels of volatility.
The funding constraints in international financial markets could impact both the availability and cost
of foreign funding for banks and corporates. Since the Indian financial system is bank dominated,
banks' ability to withstand stress is critical to overall financial stability. Indian banks, however,
remain robust, notwithstanding a decline in capital to risk-weighted assets ratio and a rise in nonperforming asset levels in the recent past. Capital adequacy levels remain above the regulatory
requirements. The financial market infrastructure continues to function without any major
disruption. With further globalization, consolidation, deregulation, and diversification of the financial
system, the banking business may become more complex and riskier. Issues like risk and liquidity
management and enhancing skill therefore assume greater significance.

According to the passage, the financial markets in the emerging market economies including
India had the adverse impact in recent years due to
1. weak global economic prospects.
2. uncertainties in the international financial markets.
3. sovereign risk concerns in the Euro area.
4. bad monsoons and the resultant crop loss.
Select the correct answer using the code given below:

1 and 2 only 1, 2 and 3 2 and 3 only 2, 3 and 4

General Studies

Political Science and International Relations

Sociology

Some Reference Essays

List of previous year essay topics (1997-2019)

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