Correct answer: (c) 1 and 3 only
Explanation
- A
1 only
Bringing idle household gold into the economy is a stated aim of Gold Monetisation and is supported by Sovereign Gold Bonds as a paper substitute for physical gold. Statement 3 (cutting import dependence) is also an aim, so 1 only is incomplete.
- B
2 and 3 only
Promoting FDI in gold and jewellery plus reducing imports would treat FDI as a purpose of these two schemes. SGB and GMS are domestic gold-policy instruments, not FDI promotion windows. 2 and 3 only is not the key.
- C
1 and 3 only
The Sovereign Gold Bond Scheme and the Gold Monetisation Scheme aim to mobilise idle gold and to reduce the current-account pressure of gold imports by offering interest-bearing bonds and deposit facilities instead of bars and jewellery. They are not designed as FDI schemes for the jewellery sector. Statements 1 and 3 only are correct, so (c) is the official key.
- D
1, 2 and 3
Including statement 2 adds an FDI purpose that the schemes do not carry. All three is therefore wrong.
Summary. Official key is (c) 1 and 3 only. India is among the world’s largest gold consumers; imports weigh on the current account. SGB lets residents hold gold in demat form with interest and sovereign backing; GMS lets banks and refiners mobilise deposited gold. Neither scheme is an FDI promotion tool for jewellery. Statement 2 is the false purpose. 1 and 3 capture the actual policy.
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