Economy
2016
Government Schemes
Banking in India

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.

B.2 and 3 only
D.1, 2 and 3
C.1 and 3 only
A.1 only

Correct Answer: Option C

The Sovereign Gold Bond Scheme and Gold Monetization Scheme have the following primary objectives:

  • To bring idle gold held by Indian households into the economy.
  • To reduce India’s dependence on gold imports by decreasing the physical demand for gold.

The schemes are not designed to promote Foreign Direct Investment (FDI) in the gold and jewellery sector.

Statement 1 is correct. Statement 2 is not correct. Statement 3 is correct.

Hence, only statements 1 and 3 are correct.

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