UPSC Prelims 2004 · General Studies
Question 130: Economy and Social Development
Consider the following statements:
- 1.Reserve Bank of India was nationalized on 26 January 1950.
- 2.The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance.
Which of these statements given above is/are correct?
AnswerThe answer is (d).
Neither statement is correct. The Reserve Bank was nationalised on 1 January 1949, before the Constitution came into force; 26 January 1950 is the day the Republic began. The government's market borrowing is handled by the Department of Economic Affairs of the Finance Ministry, with the RBI managing the issues, not by the Department of Expenditure.
- 1. The RBI was nationalised on 1 January 1949.
- 2. Borrowing is handled by the Department of Economic Affairs.
How you could have got this
- If you were sure statement 1 is not correct, (a) and (c) go: each of them includes 1.
What you needed to know: The RBI was nationalised on 1 January 1949.
- Then, if you were sure statement 2 is not correct, (b) goes: it includes 2.
What you needed to know: Borrowing is handled by the Department of Economic Affairs.
Only (d) is left. This one needs every statement.
This follows an unofficial answer: UPSC has not published its key for this year, and if that answer is wrong, so is this path.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Statement 1 has the wrong date.
- (b) Statement 2 names the wrong department.
- (c) Both statements are wrong.
- (d) Correct: neither statement is right.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2004, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.