Economics · Banking and Monetary Policy
Consider the following statements: Statement I: The Union Government has, on multiple occasions, infused capital into Public Sector Banks to strengthen their balance sheets and regulatory capital position. Statement II: Such recapitalisation, depending on its mode and financing, can add to the fiscal burden of the Government. Which one of the following is correct in respect of the above statements?
- 1Statement I is not correct but Statement II is correct
- 2Statement I is correct but Statement II is not correct
- 3Both Statement I and Statement II are correct but Statement II does not explain Statement I
- 4Both Statement I and Statement II are correct and Statement II explains Statement I✓
Correct answer
Both Statement I and Statement II are correct and Statement II explains Statement I
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