if substantial number of people from India decide to invest in financial instruments instead of Gold, how it may help the Indian Economy?

1. It can help to curb the current account deficit

2. It can help to fine tune the balance of trade

3. It can help to bring down interest rates

4. It can help to generate employments

Select the correct option from the codes given below:

Answer: [D] 1, 2, 3 & 4

The first and second statements are direct impacts. Third statement is also correct because when gold is liquidated, money will enter into the system and thus will bring down the interest rates. Fourth statement is also correct. Gold remains an idle resource but the money invested in financial instruments participates in the economic markets and thus contributes in economic activities which help to generate employments.

This question is a part of GKToday's Integrated IAS General Studies Module