A
Both 1 and 2
B
Neither 1 nor 2
C
1 only
D
2 only
Correct answer: (c) 1 only
Explanation
Statement 1 is correct as direct foreign exchange intervention alters net foreign exchange assets directly. Statement 2 is incorrect because oil marketing companies are state-owned or private enterprises engaged in refining, importing, and distributing petroleum products, and are not strictly managed solely as direct departmental units of the Ministry of Finance in that context.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2017 · Q77 · General Studies · 2 marks
Which of the following has/have occurred in India after its liberalization of economic policies in 1991? 1. Share of agriculture in GDP increased enormously. 2. Share of India's exports in world trade increased. 3. FDI inflows increased. 4. India's foreign exchange reserves increased enormously. Select the correct answer using the codes given below: -
2017 · Q81 · General Studies · 2 marks
What is/are the most likely advantages of implementing 'Goods and Services Tax (GST)'? 1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 2. It will drastically reduce the 'Current Account Deficit' of India and will enable it to increase its foreign exchange reserves. 3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below: -
2024 · Q42 · General Studies · 2 marks
Consider the following statements: 1. In India, Non- Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India. 2. In India, Foreign Institutional Investors can hold the Government Securities (G-Secs). 3. In India, Stock Exchanges can offer separate trading platforms for debts. Which of the statements given above is/are correct? -
2021 · Q15 · General Studies · 2 marks
In India, the central bank's function as the 'lender of last resort' usually refers to which of the following? 1. Lending to trade and industry bodies when they fail to borrow from other sources 2. Providing liquidity to the banks having a temporary crisis 3. Lending to governments to finance budgetary deficits Select the correct answer using the code given below -
2020 · Q57 · General Studies · 2 marks
If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? 1. Cut and optimise the Statutory Liquidity Ratio 2. Increase the Marginal Standing Facility Rate 3. Cut the Bank Rate and Repo Rate Select the correct answer using the code given below: