Economics · Economy
Analyze the following statements regarding the framework of External Commercial Borrowings (ECBs) in India: Statement I: The ECB framework treats the exchange rate fluctuation risk as solely the responsibility of the government. Statement II: The ECB framework specifies the minimum average maturity period (MAMP) and all-in-cost ceilings to prevent excessive short-term foreign currency debt accumulation. Statement III: The use of ECB funds is completely unrestricted and can be freely utilized for investment in domestic stock markets. Statement IV: The development of currency hedging markets allows ECB borrowers to manage and transfer exchange rate risk. Which of the above statements are factually correct features or consequences of India's ECB framework?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1All the Statements (I, II, III, and IV)
- 2Only Statement I, Statement II, and Statement IV
- 3Only Statement II and Statement IV✓
- 4Only Statement I and Statement III
Correct answer
Only Statement II and Statement IV
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