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Question No. 169Interactive Test Mode
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Q169. Consider the following statements: 1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. 2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the state Governments. 3. Treasury bills are issued at a discount from the par value. Which of the statements given above is/are correct?

Consider the following statements:

  1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
  2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the state Governments.
  3. Treasury bills are issued at a discount from the par value. 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 2018 • Indian Economy

Correct Answer: Option (C) — 2 and 3 only

Concept & Option Breakdown

Standard Reference Verified

Statement 1 is incorrect: The RBI manages and services both Central Government securities (G-Secs, T-Bills) and State Government securities (State Development Loans - SDLs). Statement 2 is correct: Only the Central Government issues Treasury Bills; State Governments do not issue T-bills (they issue SDLs). Statement 3 is correct: Treasury Bills are zero-coupon money market instruments issued at a discount to their face value and redeemed at par upon maturity.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2018 (Q169)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Banking & Financial System
Official Answer KeyOption (C) — 2 and 3 only

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Frequently Asked Questions — UPSC Prelims 2018 Q169

What is the official answer for UPSC Prelims 2018 GS Paper I Question 169 (Indian Economy)?

The official UPSC answer key for this 2018 Indian Economy (Banking & Financial System) question is Option (C): "2 and 3 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2018 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Banking & Financial System". You can explore all repeated questions from Banking & Financial System 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 Banking & Financial System UPSC Prelims question using option elimination?

To solve Banking & Financial System 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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