2018 · Q73
directions : The following four (4) items consist of two statements, Statement I and Statement II. Examine these two statements carefully and select the correct answer using the code given below : Code :
Statement IThere has been a sharp decline in savings rate in Indian economy between 2007- 2008 to 2015-2016.
Statement IIThere has been a fall in household and public savings.
General KnowledgeIndian Economy
- ABoth the statements are individually true and Statement II is the correct explanation of Statement I.
- BBoth the statements are individually true but Statement II is not the corrct explanation of Statement I.
- CStatement I is true but Statement II is false.
- DStatement I is false but Statement II is true.
Explanation
Statement I is true: India's gross savings rate declined in the mid-2010s, driven by falling household financial savings and lower public savings. Statement II is true: the fall in household and public savings was the main arithmetic contributor. Statement II directly explains the decline described in I, so the correct choice is that both statements are true and II is the correct explanation of I.