From time to time, the Government takes the decision to disinvest the CPSEs but largely it decides to retain the management control on case to case basis. Hence, statement 2 is not correct.

The Government does not necessarily intend to use the revenue earned from the disinvestment mainly to pay back the external debt. Hence, statement 1 is not correct.

Option A - Mainly keyword ( eliminate )

Option B - no longer intends to retain ( not necessary )

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Economic growth means more money in circulation, it means money supply will increase

Logo ke hath me jyada paisa aayega to demand badhegi

Demand badhi to price badhega price badha to inflation aayegi 💯

Keywords - inflation, demand - supply

Deflation, inflation, stagnation, recession, stagflation, purchasing power
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Any reduction in the bank rate and the repo rate will lead to borrowers getting loans at lower interest rates.
The lowering of the Bank Rate makes the domestic banks borrow money at a cheap rate which in turn increased the liquidity in the market.

Yad rakhna, bank rate me koi collateral nahi hota hai 💯

But repo rate me collateral security hoti hai

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UPSC 2013 Economics PYQs 🌟