Consider the following statements: 1. During the year 2004, Indias foreign exchange reserves did not exceed the 125 billion U.S. dollar mark. 2. The Series of index numbers of wholesale prices introduced from April, 2000 has the year 1993-94 as base year.

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Submitted by examrobotsa on

Q: 99 (IAS/2005)
Consider the following statements:
1. During the year 2004, India’s foreign exchange reserves did not exceed the 125 billion U.S. dollar mark.
2. The Series of index numbers of wholesale prices introduced from April, 2000 has the year 1993-94 as base year.
Which of the statements is/are correct?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,18,55,19,18,32,4

keywords: 

{'foreign exchange reserves': [0, 1, 1, 1], 'index numbers': [0, 0, 1, 0], 'base year': [0, 0, 1, 1], 'year': [27, 4, 33, 49], 'series': [0, 1, 1, 0], 'wholesale prices': [0, 0, 1, 0]}

The correct answer is option 2 ("2 only") which implies that only the second statement in the question is correct.

The first statement is incorrect. According to data from the Reserve Bank of India, India`s foreign exchange reserves exceeded the 125 billion U.S. dollar mark in the year 2004.

The second statement is correct. In India, the Wholesale Price Index (WPI) base year was changed from 1993-94 to 2004-05 in 2011; however, before this change, from April 2000, the base year for the WPI was indeed 1993-94.

So, the correct answer is option 2 because only the second statement is accurate while the first statement is not. The other options - 1, 3 and 4, are incorrect as they claim the wrong statement(s) to be true.