XII ARTS - TEST 2

_________ was the Indian Finance Minister in 1991, acknowledged for his capabilities to steer away the economic crises looming large on the erstwhile Indian Economy.

• P.V Narasimha Rao

• Dr. Manmohan Singh

• Pranab Mukherjee

• Dr. Urjit Patel

• A-(iii) B-(i) C-(iv) D-(ii)

• A-(ii) B-(i) C-(iii) D-(iv)

• A-(ii) B-(iv) C-(i) D-(iii)

• A-(ii) B-(iii) C-(i) D-(iv)

Which of the following is incorrect with regard to the financial sector reforms taken under the purview of New Economic Policy, 1991?

• Role of RBI shifted from regulator to facilitator of financial institutions.

• Foreign investment limit in banks was raised to around 80 percent.

• Foreign Institutional Investors are now allowed to invest in Indian financial markets.

• Banks can set up new branches without the approval of RBI provided they fulfil certain conditions

Which of the following explains the way for a government company to go private?

• Withdrawal of the government from ownership and management of public sector companies 

• Outright sale of public sector companies

• Both (a) and (b)

• None of the above

Statement 1: Strategic sale implies selling up of major proportion of equity (51% or more) of PSEs to the private sector. Statement 2: The process of transferring the ownership, management and control of a public sector partially/entirely to the private sector is known as liberalisation.

• Both the statements are true.

• Both the statements are false.

• Statement 1 is true and Statement 2 is false

• Statement 2 is true and Statement 1 is false. 

Industrial sector reforms under the New Economic Policy (NEP) comprised which of the following?

• Abolition of industrial licencing

• De-reservation of Small-scale production units.

• Contraction of public sector

• All of these

Which of the following has not occurred after the liberalisation of economic policies under the New Economic Policy (NEP), 1991?

• Significant increase in India’s foreign exchange reserves.

• Increase in inflow of foreign direct investment.

• A massive increase in the share of agriculture in India’s gross domestic product.

• Increase in India’s share of exports in world trade

Which of the following is not an element of fiscal reforms?

• Taxation reforms

• Public expenditure reforms

• Change in interest rate

• Control on public debt

Assertion (A) Disinvestment is a compulsion for the government to tackle budgetary deficit. Reason (R): Disinvestment is not a compulsion for the government to tackle budgetary deficit. The fact of the matter is that the government resorts to disinvestment (selling shares of public enterprises to private entrepreneurs) only when the public sector enterprises are found to be breeding centres of inefficiency and corruption. Of course, once disinvestment is done it helps the government to manage budgetary deficit.

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

• 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) are is true.

Statement 1: Stabilization measures are short run measured introduced by Government to control rise in price, adverse balance of payment. Statement 2: Structural measures are long-run policies which aimed at abolishing unnecessary control and restriction like permit licenses.

• Both the statements are true.

• Both the statements are false.

• Statement 1 is true and Statement 2 is false.      

• Statement 2 is true and Statement 1 is false.