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Question No. 228Interactive Test Mode
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Q228. With reference to Indian economy, consider the following statements: 1. A share of the household financial savings goes towards government borrowings. 2. Dated securities issued at market related rates in auctions form a large component of internal debt. Which of the above statements is/are correct?

With reference to Indian economy, consider the following statements:

  1. A share of the household financial savings goes towards government borrowings.
  2. Dated securities issued at market related rates in auctions form a large component of internal debt. Which of the above statements 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 2022 • Indian Economy

Correct Answer: Option (C) — Both 1 and 2

Concept & Option Breakdown

Standard Reference Verified

Statement 1 is correct: Household financial savings (invested in bank deposits, life insurance, provident funds, small savings schemes, and mutual funds) are mobilized by financial intermediaries to invest in Central and State Government Securities (G-Secs and SDLs), thereby directly and indirectly financing government borrowings.

Statement 2 is correct: Marketable dated securities issued through Reserve Bank of India auctions at market-determined yields constitute the largest share (over 65–75%) of the Central Government's total internal debt.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2022 (Q228)
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) — Both 1 and 2

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Frequently Asked Questions — UPSC Prelims 2022 Q228

What is the official answer for UPSC Prelims 2022 GS Paper I Question 228 (Indian Economy)?

The official UPSC answer key for this 2022 Indian Economy (Indian Economic Planning & Growth) question is Option (C): "Both 1 and 2". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2022 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?

To solve Indian Economic Planning & Growth 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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