AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
(B) Only I, III and IV are correct.
Statement II is incorrect — only the Union Government (not both) can make laws on the Union List.
The source passage clearly states: "The Union Government alone can make laws relating to the subjects mentioned in the Union List." Statements I (national importance), III (defence, foreign affairs), and IV (banking, currency) are directly supported by the passage. Statement II is the trap — it describes the Concurrent List, not the Union List.