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Question No. 235Interactive Test Mode
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Q235. With reference to ‘Financial Stability and Development Council’, consider the following statements: 1. It is an organ of NITI Aayog. 2. It is headed by the Union Finance Minister. 3. It monitors macroprudential supervision of the economy. Which of the statements given above is/are correct?

With reference to ‘Financial Stability and Development Council’, consider the following statements:

  1. It is an organ of NITI Aayog.
  2. It is headed by the Union Finance Minister.
  3. It monitors macroprudential supervision of the economy. 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 2016 • Indian Economy

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

Concept & Option Breakdown

Standard Reference Verified

Statement 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.

Elimination Heuristic & Exam Approach

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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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2016 (Q235)
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) — 2 and 3 only

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Frequently Asked Questions — UPSC Prelims 2016 Q235

What is the official answer for UPSC Prelims 2016 GS Paper I Question 235 (Indian Economy)?

The official UPSC answer key for this 2016 Indian Economy (Indian Economic Planning & Growth) 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 2016 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?

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 interregulatory mechanism under the Finance Ministry helps eliminate Options A and D.

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