Q42 · UPSC Prelims 2024 · Set A · Economy

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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?

A 1 and 2 only
B 3 only
C 1, 2 and 3
D 2 and 3 only

Correct answer: (c) 1, 2 and 3

Explanation

  1. A

    1 and 2 only

    1 and 2 only. Debt platforms at exchanges (3) are also keyed.

  2. B

    3 only

    3 only. The paper keys all three statements.

  3. C

    1, 2 and 3

    1, 2 and 3. NBFCs and LAF as keyed here; FIIs may hold G-Secs; exchanges can run debt platforms.

  4. D

    2 and 3 only

    2 and 3 only. Drops statement 1, which this paper keeps.

Summary. Official key is (c) 1, 2 and 3. On this paper all three statements are treated as correct: NBFC access to the RBI’s Liquidity Adjustment Facility window, FII/FPI holding of G-Secs, and stock exchanges offering separate debt-trading platforms. Honour the Commission letter even where coaching splits LAF as banks-only.

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