FOR RBI GRADE B PHASE 2 STUDY MATERIALS, VISIT WWW.CRACKGRADEB.

COM

Various reports by World Financial Institutions

Global Economic Prospects
Global Economic Prospects is a World Bank Group flagship report that examines global
economic developments and prospects, with a special focus on emerging market and
developing economies. It is issued twice a year, in January and June. The January edition
includes in-depth analyses of topical policy challenges while the June edition contains shorter
analytical pieces.

Global Economic Prospects January 2018 Broad-Based Upturn, but for How Long?

 Global GDP growth is estimated to have picked up from 2.4 percent in 2016 to 3 percent
in 2017.

 Global growth is projected to edge up to 3.1 percent in 2018, as the cyclical momentum
continues, and then slightly moderate to an average of 3 percent in 2019-20.

 Growth in emerging market and developing economies (EMDEs) is expected to

accelerate, reaching 4.5 percent in 2018 and an average of 4.7 percent in 2019-20.

 Advanced-economies growth is expected to moderate slightly in 2018, to 2.2 percent,

and to average 1.8 percent in 2019-20.

 India’s growth is projected from 6.7% in 2017 to 7.3 per cent in 2018 and 7.5 per cent in
2019 & 2020.

Commodity Markets Outlook: The Commodity Markets Outlook is published twice a year, in
April and October by World Bank. The report provides detailed market analysis for major
commodity groups, including energy, agriculture, fertilizers, metals, and precious metals.

Price forecasts to 2030 for 46 commodities are presented, together with historical price data.

The report also contains production, consumption, and trade statistics for major commodities.
Commodity price data updates are published separately at the beginning of each month.

www.crackgradeb.com 1 e-mail us at crackgradeb@gmail.com

 FOR RBI GRADE B PHASE 2 STUDY MATERIALS, VISIT WWW.CRACKGRADEB.COM

Word Development Report 2018

The World Bank’s World Development Report, published annually since 1978, is an invaluable
guide to the economic, social, and environmental state of the world today. Each report
provides in-depth analysis and policy recommendations on a specific and important aspect of
development—from agriculture, the role of the state, transition economies, and labor to
infrastructure, health, the environment, and poverty.

Title of the report: Learning to realize education’s promise.

The 2018 WDR explores four main themes:

1) education’s promise;
2) the need to shine a light on learning;
3) how to make schools work for learners; and
4) how to make systems work for learning.

This year’s World Development Report (WDR) was prepared by a team led by Deon Filmer and
Halsey Rogers.

 In India, Grade 2 students who could not read a single word of a short text – 85%

 In India, Grade 2 students who could not perform two-digit subtraction -85%

 In rural India, just under three-quarters (75%) of students in grade 3 could not solve a
two-digit subtraction such as 46 – 17, and by grade 5 half (50%) could still not do so.

 In rural India in 2016, only half (50%) of grade 5 students could fluently read text at the
level of the grade 2 curriculum.

 Two studies found that nearly 90 percent of women in northern India (from the state
of Uttar Pradesh) and Nigeria (of Hausa ethnicity) felt they needed their husband’s
permission to work.

 In rural India in 2016, less than 28 percent of students in grade 3 could master double-
digit subtraction.

 In Bihar, India, only 10.5 percent of tested public school teachers are able to solve a
three-digit by one-digit division problem and show the steps correctly.

 According to recent data on 1,300 villages in India, nearly 24 percent of teachers were
absent during unannounced visits, at an associated fiscal cost of US$1.5 billion a year.

www.crackgradeb.com 2 e-mail us at crackgradeb@gmail.com

 FOR RBI GRADE B PHASE 2 STUDY MATERIALS, VISIT WWW.CRACKGRADEB.COM

 More than 60 percent of primary school children in developing countries still fail to
achieve minimum proficiency in learning, according to one benchmark. Minimum
proficiency in mathematics is benchmarked to the Trends in International Mathematics
and Science Study (TIMSS) assessment and in reading to the Progress in International
Reading Literacy Study (PIRLS) assessment.

 Thirty percent of children under 5 in developing countries are physically stunted,

meaning they have low height for their age, typically due to chronic malnutrition.

World Economic Outlook, April 2018 Cyclical Upswing, Structural Change: The World
Economic Outlook (WEO) is a survey conducted and published by the International Monetary
Fund. It is published biannually and partly updated two times a year. It portrays the world
economy in the near and medium context, with projections for up to four years into the future.
WEO forecasts include key macroeconomic indicators, such as GDP, inflation, current
account and fiscal balance of 193 countries around the globe. It also deals with major economic
policy issues.

 Global growth is expected to tick up to 3.9 percent in both 2018 and 2019, supported
by strong momentum, favorable market sentiment, accommodative financial conditions,
and the domestic and international repercussions of expansionary fiscal policy in the
United States.

 India’s growth is projected 6.7% in 2017 to 7.4 per cent in 2018 and 7.8 per cent in
2019. India in 2018 and 2019 would re-emerge as one of the fastest growing major
economies. India has made progress on structural reforms in the recent past, including
through the implementation of the GST, which will help reduce internal barriers to
trade, increase efficiency, and improve tax compliance. The corporate debt overhang
and associated banking sector credit quality concerns exert a drag on investment in
India

 China is expected to grow respectively at 6.6 and 6.4 per cent in the two years (2018 &
2019).

 U.S. current account deficit for 2019 to be roughly $150 billion higher.

Global Financial Stability Report: The Global Financial Stability Report provides an assessment
of the global financial system and markets, and addresses emerging market financing in a global
context. It focuses on current market conditions, highlighting systemic issues that could pose a
risk to financial stability and sustained market access by emerging market borrowers. The
Report draws out the financial ramifications of economic imbalances highlighted by the IMF's
World Economic Outlook. It contains, as special features, analytical chapters or essays on
structural or systemic issues relevant to international financial stability. It is released twice a
year by IMF.

www.crackgradeb.com 3 e-mail us at crackgradeb@gmail.com

 FOR RBI GRADE B PHASE 2 STUDY MATERIALS, VISIT WWW.CRACKGRADEB.COM

Global Financial Stability Report April 2018: A Bumpy Road Ahead: The April 2018 Global
Financial Stability Report (GFSR) finds that short-term risks to financial stability have increased
somewhat since the previous GFSR. Medium-term risks are still elevated as financial
vulnerabilities, which have built up during the years of accommodative policies, could mean a
bumpy road ahead and put growth at risk. Higher inflation may lead central banks to respond
more aggressively than currently expected, which could lead to a sharp tightening of financial
conditions. Valuations of risky assets are still stretched, and liquidity mismatches, leverage, and
other factors could amplify asset price moves and their impact on the financial system.

Emerging markets have generally improving fundamentals, but could be vulnerable to sudden
tightening of global financial conditions. Banks have strengthened their balance sheets since
the crisis, but parts of the system face a structural US dollar liquidity mismatch that could be a
vulnerability. Crypto assets have features that may improve market efficiency, but they could
also pose risks if used with leverage or without appropriate safeguards. Policymakers and
investors must remain attuned to the risks of rising interest rates and higher market volatility.
Central banks should continue to normalize policy gradually and communicate clearly, while
policymakers should address vulnerabilities by deploying and developing macro prudential
tools.

This GFSR also examines the short- and medium-term implications for downside risks to growth
and financial stability of the riskiness of corporate credit allocation. It documents the cyclical
nature of the riskiness of corporate credit allocation at the global and country levels and its
sensitivity to financial conditions, lending standards, and policy and institutional settings.
Another chapter analyzes whether and how house prices move in tandem across countries and
major cities around the world—that is, global house price synchronicity. The report finds
increase in house price synchronization, on balance, for 40 advanced and emerging market
economies and 44 major cities.

Fiscal Monitor: With increasing fiscal challenges in the aftermath of the global financial crisis,
multilateral surveillance of fiscal developments, a key part of the IMF’s surveillance
responsibilities, has gained further importance. In response, the Fiscal Monitor was launched in
2009 to survey and analyze the latest public finance developments, update fiscal implications of
the crisis and medium-term fiscal projections, and assess policies to put public finances on a
sustainable footing.

The Fiscal Monitor is prepared twice a year by the IMF’s Fiscal Affairs Department. Its
projections are based on the same database used for the World Economic Outlook (WEO) and
the Global Financial Stability Report (GFSR). The fiscal projections for individual countries have
been prepared by IMF desk economists, and, in line with the WEO guidelines, assume that
announced policies will be implemented.

www.crackgradeb.com 4 e-mail us at crackgradeb@gmail.com

 FOR RBI GRADE B PHASE 2 STUDY MATERIALS, VISIT WWW.CRACKGRADEB.COM

IMF Fiscal Monitor: Capitalizing on Good Times: The April 2018 edition of Fiscal Monitor is
focused on two broad themes: the burden of high global debt and the opportunities and
challenges of digital government.

 Global debt is at historic highs, reaching the record peak of US$164 trillion in 2016,
equivalent to 225 percent of global GDP. The world is now 12 percent of GDP deeper in
debt than the previous peak in 2009, with China as a driving force.

 Debt in advanced economies is at 105 percent of GDP on average—levels not seen since
World War II.

 In emerging market and middle-income economies, debt is close to 50 percent of GDP

on average—levels last seen during the 1980s debt crisis.

 For low-income developing countries, average debt-to-GDP ratios have been climbing at
a rapid pace and exceed 40 percent as of 2017. Moreover, nearly half of this debt is on
non-concessional terms, which has resulted in a doubling of the interest burden as a
share of tax revenues in the past 10 years.

 Digitalization could also help governments track down taxes on wealth sheltered in low-
tax jurisdictions, estimated at an average of 10 percent of world GDP.

 India's general government debt remained relatively high, at 70.2 per cent of the GDP in
2017

 India’s General Government Debt is expected to be 61.4% of GDP by 2023 and fiscal
deficit is expected to be 6.5% by 2018, 2019 and 5.9% of GDP by 2023.

Asian Development Outlook: The Asian Development Outlook is an annual publication

(produced by the Asian Development Bank (ADB). It offers economic analysis and forecasts, as
well as an examination of social development issues, for most countries in Asia. It is published
each March/April. The publication is prepared by staff of ADB’s regional departments, and field
offices, under the coordination of the Economic Research and Regional Cooperation
Department with the goal of developing "consistent forecasts for the region.

Asian Development Outlook (ADO) 2018: How Technology Affects Jobs:

 Developing Asia enjoys buoyant prospects as external demand remains strong. The
region is forecast to expand by 6.0% in 2018, just 0.1 percentage points off the 2017
rate, and by 5.9% in 2019.

www.crackgradeb.com 5 e-mail us at crackgradeb@gmail.com

 FOR RBI GRADE B PHASE 2 STUDY MATERIALS, VISIT WWW.CRACKGRADEB.COM

 With oil prices edging up and robust consumer demand continuing, inflation is poised to
pick up after dipping slightly last year. Consumer prices are projected to rise by 2.9% in
both 2018 and 2019, or 0.6 percentage points more than in 2017.

 Improved business regulation and buoyant tax revenue will bolster growth to the
forecast horizon, as it accelerates to 7.3% in 2018 and 7.6% in 2019.

 China’s growth is expected to 6.6% in 2018 and 6.4% in 2019.

MCQs:

Statement: The upswing in global investment and trade continued in the second half of 2017.
At 3.8 percent, global growth in 2017 was the fastest since 2011. With financial conditions still
supportive, global growth is expected to tick up to a 3.9 percent rate in both 2018 and 2019.
Advanced economies will grow faster than potential this year and next; euro area economies
are set to narrow excess capacity with support from accommodative monetary policy, and
expansionary fiscal policy will drive the US economy above full employment.

Aggregate growth in emerging market and developing economies is projected to firm further,
with continued strong growth in emerging Asia and Europe and a modest upswing in
commodity exporters after three years of weak performance. Global growth is projected to
soften beyond the next couple of years. Once their output gaps close, most advanced
economies are poised to return to potential growth rates well below averages, held back by
aging populations and lackluster productivity. US growth will slow below potential as the
expansionary impact of recent fiscal policy changes goes into reverse.

Growth is projected to remain subpar in several emerging market and developing economies,
including in some commodity exporters that continue to face substantial fiscal consolidation
needs. While upside and downside risks to the short-term outlook are broadly balanced, risks
beyond the next several quarters clearly lean to the downside. Downside concerns include a
possibly sharp tightening of financial conditions, waning popular support for global economic
integration, growing trade tensions and risks of a shift toward protectionist policies, and
geopolitical strains.

The current recovery offers a window of opportunity to advance policies and reforms that
secure the current upswing and raise medium-term growth to the benefit of all. Such policies
should focus on strengthening the potential for higher and more inclusive growth, building
buffers to deal more effectively with the next downturn, improving financial resilience to
contain market risks and stability concerns, and fostering international cooperation

www.crackgradeb.com 6 e-mail us at crackgradeb@gmail.com

 FOR RBI GRADE B PHASE 2 STUDY MATERIALS, VISIT WWW.CRACKGRADEB.COM

Q.1The above paragraph refers to which report:

1. World Economic outlook
2. Global financial stability report
3. India Development Update
4. Asian Development Outlook

Q.2 The report referred in the above paragraph is released by which international
organization:
1. IMF
2. WB
3. ADB
4. NDB

Q.3 The report projected the India's growth to further accelerate to what per cent in 2018.
1. 7.4
2. 7.5
3. 8.1
4. 6.8

Q.4 The report is being released how many times in a year:

1. 2
2. 1
3. 4
4. 3

Statement: Global debt is at historic highs, reaching the record peak of US$164 trillion in 2016,
equivalent to 225 percent of global GDP. The world is now 12 percent of GDP deeper in debt
than the previous peak in 2009, with China as a driving force. Public debt plays an important
role in the surge in global debt, reflecting the economic collapse during the global financial
crisis and the policy response, as well as the effects of the 2014 fall in commodity prices and
rapid spending growth in the case of emerging markets and low-income developing countries.

Debt in advanced economies is at 105 percent of GDP on average—levels not seen since World
War II. In emerging market and middle-income economies, debt is close to 50 percent of GDP
on average—levels last seen during the 1980s debt crisis.

For low-income developing countries, average debt-to-GDP ratios have been climbing at a rapid
pace and exceed 40 percent as of 2017. Moreover, nearly half of this debt is on non-
concessional terms, which has resulted in a doubling of the interest burden as a share of tax
revenues in the past 10 years.

www.crackgradeb.com 7 e-mail us at crackgradeb@gmail.com

 FOR RBI GRADE B PHASE 2 STUDY MATERIALS, VISIT WWW.CRACKGRADEB.COM

Underpinning debt dynamics for all countries are large primary deficits, which reached record
levels in the case of emerging market and developing economies. High government debt and
deficits are cause for concern. Countries with elevated government debt are vulnerable to a
sudden tightening of global financing conditions, which could disrupt market access and put
economic activity in jeopardy. Moreover, experience shows that countries can be subject to
large, unexpected shocks to public debt-to-GDP ratios, which would exacerbate rollover risks.

It is important to note that large debt and deficits hinder governments’ ability to implement a
strong fiscal policy response to support the economy in the event of a downturn. Historical
experience shows that a weak fiscal position increases the depth and duration of recession—
such as in the aftermath of a financial crisis—because governments are unable to deploy
sufficient fiscal policy to support growth. Building fiscal room to maneuver is especially relevant
now that private sector debt is at record highs and rising. Excessive private debt in some
countries puts them at risk of an abrupt and costly deleveraging process.

Q.5 The above paragraph refers to which report:

1. World Economic outlook
2. Global financial stability report
3. Fiscal Monitor
4. Asian Development Outlook

Q.6 The report referred in the above paragraph is released by which international
organization:
1. IMF
2. WB
3. ADB
4. NDB

Q.7 The report projected the India’s general government debt to be …….by 2023.
1. 70.2%
2. 78.1%
3. 61.4%
4. 68.0%

Q.8 The report is being released how many times in a year:

1. 2
2. 1
3. 4
4. 3

www.crackgradeb.com 8 e-mail us at crackgradeb@gmail.com

 FOR RBI GRADE B PHASE 2 STUDY MATERIALS, VISIT WWW.CRACKGRADEB.COM

Statement: The April 2018 report released by an international organization finds that short-
term risks to financial stability have increased somewhat since the previous report. Medium-
term risks are still elevated as financial vulnerabilities, which have built up during the years of
accommodative policies, could mean a bumpy road ahead and put growth at risk. Higher
inflation may lead central banks to respond more aggressively than currently expected, which
could lead to a sharp tightening of financial conditions. Valuations of risky assets are still
stretched, and liquidity mismatches, leverage, and other factors could amplify asset price
moves and their impact on the financial system.

Emerging markets have generally improving fundamentals, but could be vulnerable to sudden
tightening of global financial conditions. Banks have strengthened their balance sheets since
the crisis, but parts of the system face a structural US dollar liquidity mismatch that could be a
vulnerability. Crypto assets have features that may improve market efficiency, but they could
also pose risks if used with leverage or without appropriate safeguards. Policymakers and
investors must remain attuned to the risks of rising interest rates and higher market volatility.
Central banks should continue to normalize policy gradually and communicate clearly, while
policymakers should address vulnerabilities by deploying and developing macroprudential
tools.

This report also examines the short- and medium-term implications for downside risks to
growth and financial stability of the riskiness of corporate credit allocation. It documents the
cyclical nature of the riskiness of corporate credit allocation at the global and country levels and
its sensitivity to financial conditions, lending standards, and policy and institutional settings.
Another chapter analyzes whether and how house prices move in tandem across countries and
major cities around the world—that is, global house price synchronicity. The report finds
increase in house price synchronization, on balance, for 40 advanced and emerging market
economies and 44 major cities.

Q.9 The above paragraph refers to which report:

1. World Economic outlook
2. Global financial stability report
3. Fiscal Monitor
4. Asian Development Outlook

Q.10 The report referred in the above paragraph is released by which international
organization:
1. IMF
2. WB
3. ADB
4. NDB

www.crackgradeb.com 9 e-mail us at crackgradeb@gmail.com

 FOR RBI GRADE B PHASE 2 STUDY MATERIALS, VISIT WWW.CRACKGRADEB.COM

Q.11 The report Asian development Outlook is released by which international organization:
1. ASEAN
2. AIIF
3. ADB
4. NDB

Q.12 The report Asian development Outlook is being released how many times in a year:
1. 2
2. 1
3. 4
4. 3

Q.13 The report World Economic Outlook is released by which international organization:
1. IMF
2. WB
3. ADB
4. NDB

Q.14 The report World Economic Outlook is being released how many times in a year:
1. 2
2. 1
3. 4
4. 3

Q.15 The report World Development Report is released by which international organization:
1. IMF
2. WB
3. ADB
4. NDB

Q.16 The report World Development Report is being released how many times in a year:
1. 2
2. 1
3. 4
4. 3

Q.17 The report Fiscal monitor is released by which international organization:

1. IMF
2. WB
3. ADB
4. NDB

www.crackgradeb.com 10 e-mail us at crackgradeb@gmail.com

 FOR RBI GRADE B PHASE 2 STUDY MATERIALS, VISIT WWW.CRACKGRADEB.COM

Q.18 The report Global Economic Prospects is released in which months:

1. October and April
2. March and April
3. January and June
4. None of these

Q.19 The report World Economic Outlook is released in which months:

1. October and April
2. March and April
3. January and June
4. None of these

Q. 20 Commodity Markets Outlook is released by which international organization:

1. IMF
2. WB
3. ADB
4. NDB

Answers:
1. 1. World Economic outlook
2. 1. IMF
3. 1. 7.4
4. 1. 2
5. 3. Fiscal Monitor
6. 1. IMF
7. 3. 61.4%
8. 1. 2
9. 2. Global financial stability report
10. 1. IMF
11. 3. ADB
12. 2. 1
13. 1. IMF
14. 1. 2
15. 2. WB
16. 2. 1
17. 1. IMF
18. 3. January and June
19. 1. October and April
20. 2. WB

www.crackgradeb.com 11 e-mail us at crackgradeb@gmail.com