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Question No. 200Interactive Test Mode
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Q200. Consider the following statements: 1. The repo rate is the rate at which other banks borrow from the Reserve Bank of India. 2. A value of 1 for Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population. Which of the statements given above is/are correct?

Consider the following statements:

  1. The repo rate is the rate at which other banks borrow from the Reserve Bank of India.
  2. A value of 1 for Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population. Which of the statements given above is/are correct?
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2007 • Indian Economy

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).
Elimination Heuristic & Exam Approach

Gini coefficient: 0 = Zero inequality (Perfect equality); 1 = Maximum inequality (Perfect inequality). Statement 2 directly inverts this definition.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2007 (Q200)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (A) — (a) 1 only

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Frequently Asked Questions — UPSC Prelims 2007 Q200

What is the official answer for UPSC Prelims 2007 GS Paper I Question 200 (Indian Economy)?

The official UPSC answer key for this 2007 Indian Economy (Indian Economic Planning & Growth) question is Option (A): "(a) 1 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2007 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?

Gini coefficient: 0 = Zero inequality (Perfect equality); 1 = Maximum inequality (Perfect inequality). Statement 2 directly inverts this definition.

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