With reference to Finance Bill and Money Bill in the Indian Parliament, consider the following statements: 1. When the Lok Sabha transmits Finance Bill to the Rajya Sabha, it can amend or reject the Bill. 2. When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations. 3. In the case of disagreement between the Lok Sabha and the Rajya Sabha, there is no joint sitting for Money Bill, but a joint sitting becomes necessary for Finance Bill. How many of the above statements are correct?

Answer: B. Two of the three statements are correct (1 and 2); statement 3 is wrong. Statement 1 is CORRECT. A FINANCE BILL transmitted by Lok Sabha to Rajya Sabha CAN be amended or rejected by Rajya Sabha. Unlike a Money Bill, a Finance Bill goes through normal legislative procedure. Statement 2 is CORRECT. A MONEY BILL transmitted to Rajya Sabha CANNOT be amended or rejected by it. Rajya Sabha can only make RECOMMENDATIONS within 14 days (Article 109). The Lok Sabha may accept or reject those recommendations. Statement 3 is WRONG. The reverse is true. There is NO joint sitting for MONEY BILLS (the Rajya Sabha cannot block them anyway). For FINANCE BILLS (and ordinary bills), a joint sitting IS POSSIBLE under Article 108 in case of disagreement — but it is NOT NECESSARY/automatic; the President calls it as needed. The statement inverts the rule. Source: Articles 108, 109, 110 of Constitution / NCERT Class 11 Indian Constitution at Work Ch 5.