UPSC Prelims 2016 · GS Paper I
Question 56: Economy and Social Development
With reference to ‘Financial Stability and Development Council’, consider the following statements :
- 1.It is an organ of NITI Aayog.
- 2.It is headed by the Union Finance Minister.
- 3.It monitors macroprudential supervision of the economy.
Which of the statements given above is/are correct?
AnswerUPSC’s answer is (c).
The Financial Stability and Development Council was set up in 2010 and is chaired by the Union Finance Minister. It is not an organ of NITI Aayog, which came into being only in 2015. It strengthens the mechanism for maintaining financial stability, coordinates financial sector regulators and monitors macroprudential supervision of the economy.
- 1. The FSDC is not an organ of NITI Aayog.
- 2. The Union Finance Minister chairs it.
- 3. It monitors macroprudential supervision and financial stability.
How you could have got this
- If you were sure statement 1 is not correct, (a) and (d) go: each of them includes 1.
What you needed to know: The FSDC is not an organ of NITI Aayog.
- Then, if you were sure statement 2 is correct, (b) goes: it leaves 2 out.
What you needed to know: The Union Finance Minister chairs it.
Only (c) is left. You didn’t need statement 3.
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 wrong: it is not an organ of NITI Aayog.
- (b) Statement 3 is correct, but statement 2 is too.
- (c) Right: it is headed by the Finance Minister and monitors macroprudential supervision.
- (d) Statement 1 is wrong, so 'all three' fails.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2016, General Studies Paper I, Series A. The paper on upsc.gov.in.