Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — 2 only
Concept & Option Breakdown
Standard Reference VerifiedStatement 1 is incorrect: Government capital infusion into Public Sector Banks over the decade fluctuated depending on NPA pressures and fiscal conditions, showing a cyclical rather than steady upward trend. Statement 2 is correct: In 2017, five associate banks (State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore) and Bharatiya Mahila Bank were merged with the State Bank of India (SBI).
Statements claiming 'steadily increased' or 'steadily decreased' over an entire decade in economic trends are almost always false due to cyclical market and policy variations.
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