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The correct answer is option (c): Both 1 and 2. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
This question was asked in UPSC CSE Prelims 2016, GS Paper 1, as Question 8. It falls under Indian Economy > Financial Markets & Capital Markets.
This question is rated "moderate". It requires sound conceptual understanding of the topic.
UPSC has asked 35 questions from Financial Markets & Capital Markets (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.