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UPSC 2001: Assertion (A): Ceiling on foreign exchange for a host of current account transaction heads was lowered in the year 2000. Reason (R): There was a fall in foreign currency assets also.
(a)Both A and R are individually true, and R is the correct explanation of A
(b)Both A and R are individually true, but R is NOT a correct explanation of A
(c)A is true, but R is false
(d)A is false, but R is true
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Not attemptedCorrect Answer: (c) A is true, but R is false
The ceilings for several current-account remittances were relaxed in June-November 2000 under the new FEMA rules, so Assertion (A) is correct. RBI data show India’s foreign-currency assets actually ROSE from US$ 35 billion at end-March 1999 to US$ 38 billion at end-March 2000 and to US$ 42 billion at end-March 2001; there was no fall, making Reason (R) false. Hence A is true but R is false (option c). ([aspireias.com](https://www.aspireias.com/upsc-general-study-10years-paper/2001?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2001 Indian Economy question?▼
The correct answer is option (c): A is true, but R is false. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this External Sector & Balance Of Payments question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2001, GS Paper 1, as Question 31. It falls under Indian Economy > External Sector & Balance Of Payments.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from External Sector & Balance Of Payments?▼
UPSC has asked 49 questions from External Sector & Balance Of Payments (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.