Prelims 2016 · Economy · Question 96
What is/are the purpose/purposes of Government's 'Sovereign Gold Bond Scheme' and 'Gold Monetization Scheme'?
- To bring the idle gold lying with Indian households into the economy
- To promote FDI in the gold and jewellery sector
- To reduce India's dependence on gold imports
Select the correct answer using the code given below.
Answer
1 and 3 only
1. To bring the idle gold lying with Indian households into the economy — Correct. Gold Monetization Scheme specifically mobilizes idle gold held by households/institutions by allowing deposits of gold.
2. To promote FDI in the gold and jewellery sector — Incorrect. Neither Sovereign Gold Bond Scheme nor Gold Monetization Scheme was designed to attract FDI; their focus is domestic gold savings and demand management.
3. To reduce India's dependence on gold imports — Correct. Sovereign Gold Bonds provide a financial alternative to buying physical gold, and Gold Monetization helps recycle domestic gold stock, both aimed at reducing imports.
Hence, statements 1 and 3 only are correct.