2004 General Studies, all questions

UPSC Prelims 2004 · General Studies

Question 47: Economy and Social Development

Consider the following statements:

  1. 1.The National Housing Bank, the apex institution of housing finance in India, was set up as a wholly-owned subsidiary of the Reserve Bank of India.
  2. 2.The Small Industries Development Bank of India was established as a wholly-owned subsidiary of the Industrial Development Bank of India.

Which of the statements given above is/are correct?

a1 only
b2 only
cBoth 1 and 2
dNeither 1 nor 2

AnswerThe answer is (c).

Both statements were correct when the question was set. The National Housing Bank was set up in 1988 as a wholly-owned subsidiary of the RBI, and SIDBI was set up in 1990 as a wholly-owned subsidiary of IDBI. Remember the apex banks: NABARD for agriculture, NHB for housing, SIDBI for small industry.

  • 1. NHB was set up as a wholly-owned subsidiary of the RBI.
  • 2. SIDBI was set up as a wholly-owned subsidiary of IDBI.

How you could have got this

  1. If you were sure statement 1 is correct, (b) and (d) go: each of them leaves 1 out.

    What you needed to know: NHB was set up as a wholly-owned subsidiary of the RBI.

  2. Then, if you were sure statement 2 is correct, (a) goes: it leaves 2 out.

    What you needed to know: SIDBI was set up as a wholly-owned subsidiary of IDBI.

Only (c) 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 2 is also correct.
  • (b) Statement 1 is also correct.
  • (c) Correct: both statements hold.
  • (d) Both statements hold.

Worth knowing: Both facts were true in 2004, but ownership has since changed: the National Housing Bank passed from the RBI to the Government in 2019, and SIDBI is no longer an IDBI subsidiary.

Explanation: written by UPSC Grade, not by UPSC.

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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.