Modi's Governmenti Gets $4 Billion Cash From India's Central Bank

The video discusses the challenges faced by the central bank and government in managing reserves and budget deficits amid economic uncertainty. It highlights the RBI's recent rate cuts and the focus on headline inflation, while questioning the central bank's independence. The discussion also touches on the implications of dividend management and the need for proactive liquidity support.

What is one of the main reasons the Central Bank wants to keep reserves?

• To support local businesses

• To increase domestic spending

• To invest in foreign markets

• To fight volatility and uncertainty

What was a significant change in the government's budgetary approach?

• Increase in foreign investments

• Launch of a direct support scheme

• Reduction in public spending

• Introduction of a new tax

What was a key factor in the RBI's decision to cut rates?

• Rising unemployment

• High core inflation

• Increasing foreign debt

• Low headline inflation

What is a potential concern for foreign investors regarding India's central bank?

• High interest rates

• Central bank independence

• Lack of transparency

• Low foreign reserves

What is a common issue faced by central banks in G3 countries?

• Currency devaluation

• Trade deficits

• Independence debates

• High inflation rates