• Option (a) is correct. This act divided the Provincial subjects into two parts- transferred and reserved. Transferred subjects were to be administered by the governor with the help of ministers while the reserved list was to be administered by a governor and his executive council. This was termed a dual system of governance or Diarchy.
• Option (b) is correct. It replaced Indian Legislative Council with a Bicameral legislature consisting of two houses. The elections to both the houses were largely by direct elections.
• Option (c) is correct. It separated, for the first time, provincial budgets from the Central budget and authorized the provincial legislatures to enact their budgets.
• Option (d) is not correct. The separate electorate for Muslims was introduced in the act of 1909 itself. This provision was extended to Sikhs, Indian Christians, Anglo Indians, and Europeans.
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