CSAT Year Wise (Temporary Link, This will be removed and no PDFs shall be downloaded here. Please download CSAT subject wise files) / सी सैट

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CSAT 2024

Passage- 2

As inflation rises, even governments previously committed to budget discipline are spending freely to help households. Higher interest rates announced by central banks are supposed to help produce modest fiscal austerity, because to maintain stable debts while paying more to borrow, governments must cut spending or raise taxes. Without the fiscal backup, monetary policy eventually loses traction. Higher interest rates become inflationary, not disinflationary, because they simply lead governments to borrow more to pay rising debt-service costs. The risk of monetary unmooring is greater when public debt rises, because interest rates become more important to budget deficits.

परिच्छेद-2

जैसे-जैसे मुद्रास्फीति बढ़ती है, वे सरकारें भी जो पहले बजट अनुशासन के प्रति प्रतिबद्ध थीं, परिवारों की सहायता के लिए मुक्त रूप से व्यय करती हैं। केन्द्रीय बैंकों द्वारा घोषित उच्चतर ब्याज दरों से संतुलित राजकोषीय मितव्ययिता बरतने की अपेक्षा की जाती है, क्योंकि उधार लेने के लिए अधिक भुगतान करते समय स्थिर ऋणों को बनाए रखने के लिए, सरकारों को व्यय में कटौती करनी होगी या करों में वृद्धि करनी होगी। राजकोषीय समर्थन के बिना, मौद्रिक नीति अंततः अपना प्रभाव खो देती है। उच्चतर ब्याज दरें मुद्रास्फीतिकारक हो जाती हैं, न कि मुद्राअवस्फीतिकारक, क्योंकि वे केवल सरकारों को बढ़ती ऋण-चुकौती लागतों का भुगतान करने हेतु अधिक उधार लेने के लिए प्रेरित करती हैं। मौद्रिक अनियंत्रण का जोखिम तब और अधिक होता है, जब सार्वजनिक ऋणों में वृद्धि होती है, क्योंकि ब्याज दरें बजट घाटे के लिए और अधिक महत्त्वपूर्ण बन जाती हैं।

Q4 2024, Rising Inflation and Government Spending: The Impact on Fiscal Discipline Long Passage Q1,

Based on the above passage, the following assumptions have been made:
1. Fiscal policies of governments are solely responsible for higher prices.
2. Higher prices do not affect the long-term government bonds.
Which of the assumptions given above is/are valid?

उपर्युक्त परिच्छेद के आधार पर, निम्नलिखित पूर्वधारणाएँ बनाई गई हैं:
1. उच्चतर कीमतों के लिए सरकारों की राजकोषीय नीतियाँ पूर्ण रूप से उत्तरदायी हैं।
2. उच्चतर कीमतें दीर्घावधि सरकारी बंधपत्रों को प्रभावित नहीं करती हैं।
उपर्युक्त पूर्वधारणाओं में से कौन-सी मान्य है/हैं?

Explanation Please wait..

Statement 1 is incorrect: The passage does not suggest that fiscal policies of governments are solely responsible for higher prices. It mentions that governments are spending more to help households in the face of rising inflation, but it also discusses the role of interest rates and the impact of rising debt on budget deficits.
Statement 2 is incorrect: The passage does not suggest that higher prices do not affect long-term government bonds. It discusses the impact of higher interest rates on government borrowing costs and the importance of managing debt levels to maintain stable debts.

CSAT Year Wise (Temporary Link, This will be removed and no PDFs shall be downloaded here. Please download CSAT subject wise files) / सी सैट

Q4 2024, Rising Inflation and Government Spending: The Impact on Fiscal Discipline Long Passage Q1,

Based on the above passage, the following assumptions have been made:
1. Fiscal policies of governments are solely responsible for higher prices.
2. Higher prices do not affect the long-term government bonds.
Which of the assumptions given above is/are valid?

Explanation Please wait..

व्याख्या Please wait..

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John Doe

CSAT Year Wise (Temporary Link, This will be removed and no PDFs shall be downloaded here. Please download CSAT subject wise files) / सी सैट

Q4 2024, Rising Inflation and Government Spending: The Impact on Fiscal Discipline Long Passage Q1,

Based on the above passage, the following assumptions have been made: 1. Fiscal policies of governments are solely responsible for higher prices. 2. Higher prices do not affect the long-term government bonds. Which of the assumptions given above is/are valid?

Explanation Please wait..

व्याख्या Please wait..

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Ancient History / प्राचीन इतिहास

John Doe

Based on the above passage, the following assumptions have been made:
1. Fiscal policies of governments are solely responsible for higher prices.
2. Higher prices do not affect the long-term government bonds.
Which of the assumptions given above is/are valid?