Quiz on the 1991 Indian Economic Crisis

What was one of the main causes of the 1991 Indian economic crisis?

• Excess reliance on exports

• High levels of foreign investment

• Strong fiscal surplus

• Balance of payments deficit

Which government was in power during the 1991 economic crisis?

• Rajiv Gandhi government

• Atal Bihari Vajpayee government

• Chandrasekhar government

• Narasimha Rao government

What drastic measure did the Indian government take to secure foreign exchange during the crisis?

• Selling state-owned enterprises

• Pledging gold reserves

• Increasing taxes on imports

• Borrowing from local banks

What was the immediate response of the Indian government to the economic crisis in 1991?

• Securing an emergency loan from the IMF

• Implementing austerity measures

• Nationalizing private banks

• Increasing tariffs on imports

What was one of the outcomes of the economic liberalization policies implemented after 1991?

• Decrease in foreign investments

• Increase in government control over industries

• Significant economic growth

• Reduction in trade relations