Official Answer Key & Detailed Solution
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Correct Answer: Option (A) — 1 only
Concept & Option Breakdown
Standard Reference Verified- Statement 1 is correct: The Repo (Repurchase) rate is the benchmark policy rate at which the Reserve Bank of India lends short-term funds to commercial banks against government securities.
- Statement 2 is incorrect: The Gini Coefficient measures income inequality on a scale from 0 to 1. A value of 0 represents perfect equality (everyone has the same income), whereas a value of 1 represents perfect inequality (a single individual possesses all the income).
Gini coefficient: 0 = Zero inequality (Perfect equality); 1 = Maximum inequality (Perfect inequality). Statement 2 directly inverts this definition.
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