US FED RATE HIKE

PRACTICE QUESTION

Q. Which of the following are the plausible spill-over effects of US Fed Rate hike?

a) The import of capital goods will be under stress for India.

b) An outflow of foreign currency from India.

c) Reduction in commodity prices.

d) Stock market will witness a downturn.

1. a and b only

2. a and d only

3. b, c and d only

4. All of the above.

Correct Answer: Option 4