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GS Paper IUPSC Prelims 2001
Indian Economic Planning & Growth
Question No. 284Interactive Test Mode
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+2-0.66

Q284. Assertion (A) : Ceiling on foreign exchange for a host of current account transaction heads was lowered in the year 2000. Reason (R) : There was a fall in foreign currency assets also.

Assertion (A) : Ceiling on foreign exchange for a host of current account transaction heads was lowered in the year 2000. Reason (R) : There was a fall in foreign currency assets also.

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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2001 • Indian Economy

Correct Answer: Option (C) — A is true but R is false

Concept & Option Breakdown

Standard Reference Verified

Assertion (A) is true: Under the Foreign Exchange Management Act (FEMA), 1999/2000, ceilings and regulatory restrictions on foreign exchange for diverse current account transactions (travel, education, medical treatment) were substantially relaxed (limits lowered/liberalized).

Reason (R) is false: Foreign currency assets of India were growing steadily due to robust inflows of foreign investment, remittances, and rising export receipts during that period, rather than falling.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2001 (Q284)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (C) — A is true but R is false

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Frequently Asked Questions — UPSC Prelims 2001 Q284

What is the official answer for UPSC Prelims 2001 GS Paper I Question 284 (Indian Economy)?

The official UPSC answer key for this 2001 Indian Economy (Indian Economic Planning & Growth) question is Option (C): "A is true but R is false". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2001 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

To solve Indian Economic Planning & Growth questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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