Statement I: There has been a sharp decline in savings rate in Indian economy between 2007-2008 to 2015-2016.
Statement II: There has been a fall in household and public savings.
[amp_mcq option1=”Both the statements are individually true and Statement II is the correct explanation of Statement I” option2=”Both the statements are individually true but Statement II is not the correct explanation of Statement I” option3=”Statement I is true but Statement II is false” option4=”Statement I is false but Statement II is true” correct=”option1″]
This question was previously asked in
UPSC CDS-2 – 2018
– Statement II is true: The decline in the overall savings rate was largely driven by a fall in the savings of the household sector (both financial and physical) and the public sector (government and public enterprises) during this period.
– Statement II correctly identifies the components whose decline led to the overall sharp decline in the savings rate mentioned in Statement I, thus acting as a correct explanation.