In this section, each item consists of six sentences of a passage. The first and sixth sentences are marked as S1 and S6. The middle four sentences in each have been jumbled up and labelled as P, Q, R and S. This is followed by four options each suggesting a sequence of the sentences. Identify the most appropriate option.
S1 : Like many of its tropical counterparts, India was a colony of Britain, which ruled out any move to adjust the exchange rate.
S6 : Banks were left with unrecoverable assets.
P : Indebted business failed.
Q : With devaluation made politically impossible, fall in export demand led to sustained and deep deflation.
R : Indebted households liquidated a variety of assets to repay loans when they could.
S : Real interest rates rose.
The correct sequence should be
- ARSPQ
- BQSRP
- CSQPR
- DPSRQ
Explanation
The keyed order S-Q-P-R reads: fixed exchange rate (S1) → real interest rates rose (S) → devaluation impossible and export slump caused deep deflation (Q) → indebted businesses failed (P) → households liquidated assets (R) → banks left with unrecoverable assets (S6), a chain prepp.in defends. However, Q's 'devaluation made politically impossible' directly paraphrases S1's 'ruled out any move to adjust the exchange rate', which also supports Q-S-R-P (option B, as keyed by the hranker slides). With reputable sources split, the key is genuinely uncertain. Key disputed: verify against the official UPSC key.