New Economic Policy 1991

1. Assertion (A): Foreign exchange reserves declined to a level that was not enough to pay for the import bill of more than 2 weeks.

Reason (R): Liberalisation implies controls and restrictions on trade and industry.

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

• Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion

• Assertion (A) is true but Reason (R) is false.

• Assertion (A) is false but Reason (R) is true

1. Assertion(A) : The wage rates in India are comparatively lower than that of in the developed countries.As a result, MNCs outsource their business in India.

Reason (R) : India has a fair international worthiness and creditably.

• Both Assertion and Reason are true and Reason is the correct explanation of Assertion

• Both Assertion and Reason are true and Reason is not the correct explanation of Assertion

• Assertion is true but Reason is false

  Assertion is false but Reason is tru

• a) Assertion is false but Reason is true

1. Assertion (A): The role of RBI was reduced from facilitator to regulator of financial sector under NEP.

Reason (R): The limit of foreign investment in banks was raised to around 51% under economic reforms.

• Both Assertion (A) and Reason (R) are true and Reason (R) is the

  correct explanation of Assertion (A)

• Both Assertion (A) and Reason (R) are true and Reason (R) is not the

  correct explanation of Assertion (A)

• Assertion (A) is true but Reason (R) is false.

• Assertion (A) is false but Reason (R) is true.

1. Assertion (A): Globalization in India emerged significantly as a new phenomenon post 1991.

Reason (R): By 1990 the share of agriculture was more than that of the share of service.

• both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

• both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

• Assertion (A) is true but Reason (R) is false

• Assertion (A) is false but Reason (R) is true

(A): One of the major aims of financial sector reforms is to reduce the role of RBI from regulator to facilitator of financial-sector.

(R): This means that the financial sector may be allowed to take decisions on many matters without consulting the RBI.

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

• Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

• Assertion (A) is true but Reason (R) is false

• Assertion (A) is false but Reason (R) is true.

1. Assertion (A) : Trade and Investment policies were relaxed under Liberalization

Reason (R) : The goal of Import substitution was achieved through reforms in trade and investment sector.

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

• Assertion (A) is true but Reason (R) is false.

• Assertion (A) is false but Reason (R) is true.

1. Assertion (A) In 1991, foreign reserves were at the lowest level.

Reason (R) Foreign exchange reserves were not enough to meet India’s import requirements even for 2 weeks .

• Both Assertion (A) and Reason (R) are true and Reason (R) is the true correct explanation of Assertion (A)

• Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

• Assertion (A) is true but Reason (R) is false.

• Assertion (A) is false but Reason(R) is correct.

1. Assertion (A): New Economic Policy implied replacement of LPQ by LPG.

Reason (R): License(as in case of liquor is necessary for regulation of industry.

• Both Assertion (A) and Reason (R) are true and the Reason (R) is the correct explanation of Assertion (A)

• Both Assertion (A) and Reason (R) are true and the Reason (R) is not the correct explanation of Assertion (A)

• Assertion (A) is true but Reason (R) is false

• Assertion (A) is false but Reason (R) is true

1. Assertion (A): While announcing demonetisation on November 8 in 2016, Prime Minister Narendra Modi had outlined three broad objectives to fight black money, corruption and terror funding.

Reason (R): ₹ 500 and ₹1000 notes were demonetised.

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

• Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

• Assertion (A) is true but Reason (R) is false.

• Assertion (A) is false but Reason (R) is true.

1. Assertion (A): While announcing demonetisation on November 8 in 2016, Prime Minister Narendra Modi had outlined three broad objectives to fight black money, corruption and terror funding.

Reason (R): ₹ 500 and ₹1000 notes were demonetised.

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

• Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

• Assertion (A) is true but Reason (R) is false.

• Assertion (A) is false but Reason (R) is true.