Question

Q20. Consider the following statements:

1. Public Sector Asset Rehabilitation Agency (PARA) is being setup to deal with India’s twin balance sheet problem.

2. Twin Balance Sheet Problem (TBS) deals with two balance sheet problems. One with Indian companies and the other with Indian Banks.

Which of the statements are correct?

• A. a) 1 only
• B. b) 2 only
• C. c) Both 1 and 2
• D. d) Neither 1 nor 2

Answer 1

The correct option is C

c) Both 1 and 2

• A balance sheet is a financial statement that summarises a company/institution’s assets, liabilities and shareholder’s equity at a specific point of a time.
• Twin Balance Sheet Problem (TBS) deals with two balance sheet problems. One with Indian companies and the other with Indian Banks.
• Public Sector Asset Rehabilitation Agency (PARA) is being setup to deal with India’s festering twin balance sheet problem.