Explanation:

• Article 360 empowers the president to proclaim a Financial Emergency if he is satisfied that a situation has arisen due to which the financial stability or credit of India or any part of its territory is threatened.
• The 38th Amendment Act of 1975 made the satisfaction of the president in declaring a Financial Emergency final and conclusive and not questionable in any court on any ground. But, this provision was subsequently deleted by the 44th Amendment Act of 1978 implying that the satisfaction of the president is not beyond judicial review.
• A proclamation declaring financial emergency must be approved by both the Houses of Parliament within two months from the date of its issue. A resolution approving the proclamation of financial emergency can be passed by either House of Parliament only by a simple majority, that is, a majority of the members of that house present and voting. Hence, option (c) is correct.

The consequences of the proclamation of a Financial Emergency are as follows: The executive authority of the Centre extends

(a) to directing any state to observe such canons of financial propriety as are specified by it, and

(b) to directions as the President may deem necessary and adequate for the purpose.

Direction may include a provision requiring

(a) the reduction of salaries and allowances of all or any class of persons serving in the state, and

(b) the reservation of all money bills or other financial bills for the consideration of the President after they are passed by the legislature of the state. 

The President may issue directions for the reduction of salaries and allowances of

(a) all or any class of persons serving the Union, and

(b) the judges of the Supreme Court and the high court.

There is no provision of Parliament making laws on state subject.