Indian Economic Reform 1991

Which international institution provided financial assistance to India during the 1991 economic crisis?

• A) World Bank

• B) Asian Development Bank

• C) International Monetary Fund (IMF)

• D) Bank for International Settlements

Which major policy was introduced in economic reforms 1991, related to foreign investment?

• A) Nationalization of foreign firms

• B) Restriction on foreign direct investment (FDI)

• C) Liberalization and encouragement of foreign direct investment (FDI)

• D) Total ban on foreign investment

Choose the correct option based on the following statements:

Statement -1. The role of RBI was reduced from facilitator to regulator of financial sector under NEP

Statement-2. The limit of foreign investment in banks was raised to 51% under economic reforms.

• a. Both statements are correct.

• b. Both statements are wrong.

• c. Statement-1 is true but statement -2 is wrong

• d. Statement -1 is false but statement-2 is true

Choose the correct option:

Assertion (A): The New Economic Policy of 1991 in India marked the beginning of liberalization, privatization, and globalization.

Reason ©: The policy aimed to remove trade barriers, reduce the fiscal deficit, and attract foreign investments.

• (a) Both A and R is true, and R is the correct explanation of A.

• (b) Both A and R is true, but R is not the correct explanation of A.

• © A is true, but R is false.

• (d) A is false, but R is true.

What the following picture shows?

• (a) Globalization

• (b) Privatization

• (c) Liberalization

• (d) None of above

The New Industrial Policy of 1991 allowed Foreign Direct Investment (FDI) in several sectors of the Indian economy.

• True

• False

To solve the BOP crisis in 1991 the Indian rupee was

• (a) Appreciated

• (b) Depreciated

• (c) Revalued

• (d) Devalued