UPSC Prelims 2005 · General Studies
Question 15: Economy and Social Development
Consider the following statements :
- 1.During the year 2004, India’s foreign exchange reserves did not exceed the 125 billion U.S. Dollar mark
- 2.The series of index numbers of wholesale prices introduced from April, 2000 has the year 1993-94 as base year.
Which of the statements given above is/are correct?
AnswerThe answer is (b).
Statement 2 is right: the wholesale price index series introduced from April 2000 uses 1993-94 as its base year, replacing the 1981-82 series. Statement 1 is wrong: India's foreign exchange reserves went past 125 billion dollars before the end of 2004, and stood at about 141 billion dollars by March 2005.
- 1. Reserves rose above 125 billion dollars before the end of 2004.
- 2. The WPI series from April 2000 has 1993-94 as base year.
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: Reserves rose above 125 billion dollars before the end of 2004.
- Then, if you were sure statement 2 is correct, (d) goes: it leaves 2 out.
What you needed to know: The WPI series from April 2000 has 1993-94 as base year.
Only (b) 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 is false: reserves crossed 125 billion dollars in 2004.
- (b) Correct: only statement 2 holds.
- (c) Statement 1 is false, so both cannot be right.
- (d) Statement 2 is true, so this is wrong.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2005, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.