n NISM Certifications
XVII NISM Series XVII
Medium

If the government opts for large-scale borrowings to bridge the fiscal deficit, what is the likely impact on equity markets?

Practice question from NISM Series XVII- Retirement Adviser Mock Test 8 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    No effect on equity markets

  2. B

    Equity markets will rise due to cheap funds for companies

  3. Rising interest costs will cause equity markets to fall

    Correct answer

  4. D

    Equity markets will rise due to increased government spending

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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