Official Answer Key & Detailed Solution
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Correct Answer: Option (C) — 2 and 3 only
Concept & Option Breakdown
Standard Reference VerifiedStatement 1 is incorrect: The Financial Stability and Development Council (FSDC) is an apex-level non-statutory body set up by the Ministry of Finance in December 2010. It is not an organ of NITI Aayog.
Statement 2 is correct: The Union Finance Minister serves as the Chairperson of the FSDC.
Statement 3 is correct: A primary mandate of the FSDC is macro-prudential supervision of the economy, including addressing inter-regulatory coordination and monitoring large financial conglomerates.
Statements 1 and 2 present an institutional contradiction: a body operating as a subsidiary of NITI Aayog is rarely chaired directly by the Union Finance Minister as its primary organ. Identifying that it is a dedicated inter-regulatory mechanism under the Finance Ministry helps eliminate Options A and D.
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