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Question No. 135Interactive Test Mode
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Q135. With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements: 1. The assets in the National Investment Fund are managed by the Union Ministry of Finance. 2. The National Investment Fund is to be maintained within the Consolidated Fund of India. 3. Certain Asset Management companies are appointed as the fund managers. 4. A certain proportion of annual income is used for financing select social sectors. Which of the statements given above is/are correct ?

With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements:

  1. The assets in the National Investment Fund are managed by the Union Ministry of Finance.
  2. The National Investment Fund is to be maintained within the Consolidated Fund of India.
  3. Certain Asset Management companies are appointed as the fund managers.
  4. A certain proportion of annual income is used for financing select social sectors. 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 2010 • Indian Economy

Correct Answer: Option (C) — 3 and 4

Concept & Option Breakdown

Standard Reference Verified

Statement 1 is incorrect: The NIF is managed professionally by appointed public sector Fund Managers/AMCs (like UTI, SBI, LIC AMCs), not directly by the Ministry of Finance. Statement 2 is incorrect: The National Investment Fund (NIF) was constituted outside the Consolidated Fund of India as a separate entity. Statement 3 is correct: Public sector Asset Management Companies act as professional fund managers. Statement 4 is correct: Broad guidelines allocated 75% of the annual income from NIF for financing social sector schemes (such as education and healthcare) and 25% for capital revival of profitable CPSEs.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2010 (Q135)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Fiscal Policy & Public Finance
Official Answer KeyOption (C) — 3 and 4

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Frequently Asked Questions — UPSC Prelims 2010 Q135

What is the official answer for UPSC Prelims 2010 GS Paper I Question 135 (Indian Economy)?

The official UPSC answer key for this 2010 Indian Economy (Fiscal Policy & Public Finance) question is Option (C): "3 and 4". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2010 question belong to?

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

To solve Fiscal Policy & Public Finance 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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