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Question

During the financial emergency, the President can:
1. ask the States to reduce the salaries and allowances of all or any class of persons serving in connection with the affairs of the State.
2. ask the states to reserve money bills passed by the state legislature for his consideration.
3. issue direction to states on financial matters.
4. issue direction for the reduction of salaries and allowances of persons serving in connection with the affairs of the Union.

A
I, II and III
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B
I, III and IV
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C
II, III and IV
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D
I, II, III and IV
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Solution

The correct option is D I, II, III and IV
Option D is the correct answer as the President is empowered to carry out all these actions under Financial Emergency. Under article 360 of the Constitution, President can proclaim a financial emergency when the financial stability or credit of the nation or of any part of its territory is threatened.

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