UPSC Prelims 2016 · GS Paper I
Question 71: Economy and Social Development
What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?
- 1.To bring the idle gold lying with Indian households into the economy
- 2.To promote FDI in the gold and jewellery sector
- 3.To reduce India’s dependence on gold imports
Select the correct answer using the code given below.
AnswerUPSC’s answer is (c).
The Sovereign Gold Bond Scheme and the Gold Monetization Scheme, both launched in 2015, aim to bring the idle gold held by households and institutions into the formal economy and to reduce the country's dependence on imported gold, which weighs on the current account. Promoting foreign direct investment in the gold and jewellery sector is not their aim.
- 1. Both schemes mobilise idle household gold.
- 2. Promoting FDI in gold and jewellery is not an aim.
- 3. Mobilising domestic gold is meant to cut gold imports.
How you could have got this
- If you were sure statement 2 is not correct, (b) and (d) go: each of them includes 2.
What you needed to know: Promoting FDI in gold and jewellery is not an aim.
- Then, if you were sure statement 3 is correct, (a) goes: it leaves 3 out.
What you needed to know: Mobilising domestic gold is meant to cut gold imports.
Only (c) is left. You didn’t need statement 1.
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) Reducing gold imports is also a purpose.
- (b) FDI promotion is not a purpose, and statement 1 is a purpose.
- (c) Right: bringing idle gold into the economy and reducing imports are the purposes.
- (d) Statement 2 on FDI is not a purpose.
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.