Question

Q47) If USA stops QE (QUANTITATIVE EASING) than

• A. a) FDI and FII to India increases
• B. b) B. FDI and FII to India reduces
• C. c) Both
• D. d) Neither

Answer 1

The correct option is B

b) B. FDI and FII to India reduces

Ans: B

Explanation: Quantitative easing is an unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply. Quantitative easing increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity.