Q.3 As the prospects of the government’s borrowing programme getting disrupted due to high crude oil prices due to the Ukraine crisis are weighing heavily on market players. This calls for the use of unconventional tools by the RBI to minimise pressures on interest rates. In the context of this suggest the ways in which RBI can manage the borrowing programme to minimise the disruption. (10 Marks)

Mentor’s comment- https://indianexpress.com/article/opinion/columns/navigating-economic-uncertainties-caused-by-ukraine-war-7807512/ In the intro, mention the rising cruise oil prices due to the Ukraine crisis. In the body … Continue reading Q.3 As the prospects of the government’s borrowing programme getting disrupted due to high crude oil prices due to the Ukraine crisis are weighing heavily on market players. This calls for the use of unconventional tools by the RBI to minimise pressures on interest rates. In the context of this suggest the ways in which RBI can manage the borrowing programme to minimise the disruption. (10 Marks)