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UPSC 2022: With reference to the Indian economy, consider the following statements: 1. A share of the household financial savings goes towards government borrowings. 2. Dated securities issued at market-related rates in auctions form a large component of internal debt. Which of the above statements is/are correct?
(a)1 only
(b)2 only
(c)Both 1 and 2
(d)Neither 1 nor 2
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Not attemptedCorrect Answer: (c) Both 1 and 2
Household financial savings held in bank deposits, insurance funds and mutual/provident funds are invested in Government securities; hence a part of such savings finances government borrowing, so Statement 1 is correct. Internal public debt is predominantly made up of market-issued dated Government securities (about two-thirds of total public debt), confirming Statement 2. Therefore, both statements are correct. ([vajiramandravi.com](https://vajiramandravi.com/upsc-exam/with-reference-to-the-indian-economy-consider-the-following-statements-3/?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2022 Indian Economy question?▼
The correct answer is option (c): Both 1 and 2. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Fiscal Policy & Budget question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2022, GS Paper 1, as Question 10. It falls under Indian Economy > Fiscal Policy & Budget.
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 Fiscal Policy & Budget?▼
UPSC has asked 44 questions from Fiscal Policy & Budget (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.