question_answer

Economic Survey 2016-17 suggests the following policy initiatives to boost up the economy :

I. On the assumption that the equilibrium cash GDP ratio will be lower than before November 8, the banking system will benefit from a higher level of deposits. Thus, market interest rates deposits, lending, and yields on government securities should be lower in 201718 than 2016 17.

II. Despite decline in central government's fiscal deficit from 4.5 per cent of GDP in 2013-14 to 4.1 per cent, 3.9 per cent, and 3.5 per cent in the following years, fiscal policy needs to balance the cyclical imperatives with medium term issues relating to prudence and credibility.

III. Create a public sector asset reconstruction company so that the twin balance sheet problem can be addressed, facilitating credit and investment revival.

Correct code is-

A) Only I is correct

B) Only II is correct

C) I, II & III are correct

D) Neither I nor II is correct