{"id":92018,"date":"2025-06-01T11:12:13","date_gmt":"2025-06-01T11:12:13","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=92018"},"modified":"2025-06-01T11:12:13","modified_gmt":"2025-06-01T11:12:13","slug":"with-reference-to-the-indian-economy-consider-the-following-statement-4","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-consider-the-following-statement-4\/","title":{"rendered":"With reference to the Indian economy, consider the following statement"},"content":{"rendered":"<p>With reference to the Indian economy, consider the following statements:<\/p>\n<ul>\n<li>1. A share of the household financial savings goes towards government borrowings.<\/li>\n<li>2. Dated securities issued at market-related rates in auctions form a large component of internal debt.<\/li>\n<\/ul>\n<p>Which of the above statements is\/are correct?<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option3&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2022<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2022.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2022\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">Option C is correct.<\/section>\n<section id=\"pyq-key-points\">Government borrowings in India are primarily financed by domestic savings, a significant portion of which comes from households, either directly or indirectly through financial intermediaries. Dated securities issued through market auctions are a major tool for the government to raise these funds and constitute a large part of its internal debt.<\/section>\n<section id=\"pyq-additional-information\">Statement 1 is correct. Household financial savings deposited in banks, invested in mutual funds, insurance, or provident funds are channeled into the financial system. Banks and other financial institutions, which hold a large pool of these savings, are major subscribers to government securities (G-Secs) issued for government borrowing. Thus, a significant portion of household financial savings indirectly contributes to government borrowing.<br \/>\nStatement 2 is correct. The Indian government&#8217;s internal debt consists mainly of market borrowings (through the issuance of dated securities and treasury bills), as well as funds raised through small savings schemes and state provident funds. Dated securities, issued through auctions at market-related rates, form the largest component of the central government&#8217;s internal debt.<\/section>\n","protected":false},"excerpt":{"rendered":"<p>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? [amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"With reference to the Indian economy, consider the following statement\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-consider-the-following-statement-4\/#more-92018\">Detailed Solution<span class=\"screen-reader-text\">With reference to the Indian economy, consider the following statement<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1108,1120,1196],"class_list":["post-92018","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1108","tag-economic-development","tag-fiscal-policy-revenue","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>With reference to the Indian economy, consider the following statement<\/title>\n<meta name=\"description\" content=\"Option C is correct. Government borrowings in India are primarily financed by domestic savings, a significant portion of which comes from households, either directly or indirectly through financial intermediaries. Dated securities issued through market auctions are a major tool for the government to raise these funds and constitute a large part of its internal debt.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-consider-the-following-statement-4\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to the Indian economy, consider the following statement\" \/>\n<meta property=\"og:description\" content=\"Option C is correct. Government borrowings in India are primarily financed by domestic savings, a significant portion of which comes from households, either directly or indirectly through financial intermediaries. Dated securities issued through market auctions are a major tool for the government to raise these funds and constitute a large part of its internal debt.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-consider-the-following-statement-4\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T11:12:13+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"With reference to the Indian economy, consider the following statement","description":"Option C is correct. Government borrowings in India are primarily financed by domestic savings, a significant portion of which comes from households, either directly or indirectly through financial intermediaries. Dated securities issued through market auctions are a major tool for the government to raise these funds and constitute a large part of its internal debt.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-consider-the-following-statement-4\/","og_locale":"en_US","og_type":"article","og_title":"With reference to the Indian economy, consider the following statement","og_description":"Option C is correct. Government borrowings in India are primarily financed by domestic savings, a significant portion of which comes from households, either directly or indirectly through financial intermediaries. Dated securities issued through market auctions are a major tool for the government to raise these funds and constitute a large part of its internal debt.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-consider-the-following-statement-4\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T11:12:13+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-consider-the-following-statement-4\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-consider-the-following-statement-4\/","name":"With reference to the Indian economy, consider the following statement","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T11:12:13+00:00","dateModified":"2025-06-01T11:12:13+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Option C is correct. Government borrowings in India are primarily financed by domestic savings, a significant portion of which comes from households, either directly or indirectly through financial intermediaries. Dated securities issued through market auctions are a major tool for the government to raise these funds and constitute a large part of its internal debt.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-consider-the-following-statement-4\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-consider-the-following-statement-4\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-consider-the-following-statement-4\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"With reference to the Indian economy, consider the following statement"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/92018","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=92018"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/92018\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=92018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=92018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=92018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}