With respect to ‘Operating ratio’ in Railways, which of the following statement is/are correct?

  1. The higher is the ‘Operating Ratio’; the better is the economic condition of railways.
  2. ‘Operating ratio’ of Indian Railways is high on account of social service obligation imposed in Budget.

Select the correct option from the codes given below

Answer: [B] Only 2

First statement is incorrect, as Operating Ratio is defined as the money spends by railway to earn a Rupee. Hence lesser the operating ratio better the economic condition for Railways. Second statement is correct.

This question is a part of GKToday's Integrated IAS General Studies Module