In the context of Indian economy, the term 'Twin Balance Sheet Problem' referred to:
A. Only fiscal and current account deficits
B. Stressed balance sheets of banks and corporates
C. Only external and internal debt
D. Problems of government and household balance sheets
Answer: Option B
Solution (By JKSSB Mock Tests)
The twin balance sheet problem referred to the simultaneous stress on the balance sheets of banks (rising NPAs) and over-leveraged corporates in India during a particular period.
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