MCQs on Indian Economy and Policies

The fiscal crisis face by the Indian Economy in 1990’s was caused primarily by

• Widening gap between Imports and Exports

• Difference between savings and investments

• Widening gap between government expenditure and revenue

• Difference between aggregate demand and aggregate supply

Which of the following was not a feature of the new industrial policy 1991?

• Abolition of new industrial licensing

• Setting up of new public sector enterprises

• Permitted foreign investment

• Removal of MRTP limit

One of the policies adopted to make public sector more efficient was

• Raising fresh equity from the market

• Increasing government’s shareholding in public enterprises

• Maintaining public sector monopoly

• Increasing operational control on public enterprises by the government.

Which of the following is an important banking sector reform introduced in 1991?

• Raising SLR and CRR

• RBI determined interest rates

• Introduction of Prudential norms

• None of the above

Capital market reform includes

• Setting up of SEBI

• special recovery tribunals

• Introduction of capital adequacy norms

• Deregulation of interest rate

The FDI limit in the insurance sector in India is

• 100%

• 79%

• 49%

• 26%

Which of the following is not true of the Right to Education Act?

• Free education to all children between 6 and 14 years

• It was enacted in 2009

• It is an adult literacy programme

• It is aimed at providing quality elementary education

The scheme for improving access to secondary education is

• National Programme for Education of Girls at Elementary Level

• Model School scheme

• Rashtriya Madhyamik Shiksha Abhiyan

• Kasturba Gandhi Balika Vidyalaya

Which of the following best describes horizontal foreign direct investment?

• FDI into industry that provides inputs to the firm

• FDI into industry that uses the firm’s output

• Long term lending to a foreign firm

• FDI in the same industry abroad as the foreign investor firm

The government institution that is responsible for formulation of FDI policy in India is

• Foreign Investment Promotion Board

• The Department of Industrial Policy and Promotion

• The Ministry of External Affairs

• The RBI