2. Craze for gold in Indians has led to a surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of Gold Monetization Scheme.

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Solution

Approach
Introduction
Introduce the concept of BOP
Body
Focus areas - Impact of gold import on BOP and Rupee value Gold monetization scheme - Details of the scheme - Advantages - Exoected Impact on BOP - Expected challenges to acceptance of the scheme in Indian scenario
Conclusion
Conclude with the way forward

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Similar questions

Q.
What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?

1. To bring the idle gold lying with Indian households into the economy
2. To promote FDI in the gold and jewellery sector
3. To reduce India’s dependence on gold imports

Select the correct answer using the code given below:

Q2) Which of the following is/are the objectives of gold monetization schemes

i) Reduce gold imports

ii) Make gold a performing asset

iii) Mobilize the gold held by households and institutions in the country

iv) Improve liquidity in the market

Q34) Consider the statements about Gold Monetization Scheme:

1.Banks can accept a minimum of 30 g of raw gold in a gold savings account.

2. There is an upper limit on the weight of the gold that will be accepted)

3. Interest will be paid on the gold deposited)

Which of the above statements is/are correct?

The Sovereign Gold Bonds Scheme was announced in the Union Budget 2015-16. The scheme will help in reducing the demand for physical gold by shifting a part of the estimated 300 tons of physical bars and coins purchased every year for Investment into gold bonds.

Which of the above statement(s) is/are incorrect?

Only 1, 3&4
Only 1, 2&3
Only 2, 3&4
All of the above

Q. A gold sample contains 90% of gold and the rest copper. How many atoms of gold are present in one gram of this sample of gold? (Atomic mass of gold is 197).

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