Wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

New Economic Policy 1991

Total questions: 25

Worksheet time: 20mins

Name
Class
Date
1.

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.

a)

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

b)

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

c)

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

d)

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

2.

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.

a)

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

b)

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

c)

Assertion is true but Reason is false

Assertion is false but Reason is tru

d)

a) Assertion is false but Reason is true

3.

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.

a)

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

correct explanation of Assertion (A)

b)

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

correct explanation of Assertion (A)

c)

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

d)

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

4.

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.

a)

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

b)

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

c)

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

d)

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

5.

(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.

a)

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

b)

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

c)

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

d)

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

6.

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.

a)

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

b)

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

c)

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

d)

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

7.

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 .

a)

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

b)

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

c)

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

d)

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

8.

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.

a)

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

b)

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

c)

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

d)

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

9.

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.

a)

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

b)

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

c)

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

d)

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

10.

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.

a)

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

b)

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

c)

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

d)

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

11.

1. Assertion (A): Privatisation means transfer of ownership, management and control of public sector enterprises to the entrepreneurs in the private sector.

Reason (R): Privatisation is done to improve financial discipline and facilitate modernisation.

a)

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

b)

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

c)

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

d)

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

12.

1. Assertion (A): Greater operational, financial and managerial autonomy led to improved efficiency, infused professionalism and enabled PSUs to compete more effectively in the liberalised global environment.

Reason (R): PSUs were given greater managerial and operational autonomy, in taking various decisions to run the company under Navratna and Public Enterprise Policies

a)

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

b)

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

c)

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

d)

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

13.

1. Assertion (A): The fiscal reforms under NEP 1991 simplified the tax structure and lowered the rates of taxation.

Reason (R): Prior to 1991, the tax rates in the country were quite high, which led to tax evasion.

a)

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

b)

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

c)

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

d)

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

14.

Which statutory body is having power regarding stock market

a)

SEBI

b)

NNP

c)

MRP

d)

LIC

15.

In which among the following year the MRTP act become effective

a)

1980

b)

1960

c)

1970

d)

1990

16.

LQP raj refers to

a)

license, quota, privatisation raj

b)

liberalisation, quota, permit raj

c)

license, quota, permit raj

d)

license, quarter, privatisation raj

17.

IBRD stands for

a)

International Bank for Reconstruction and Development

b)

International Business for Reconstruction and Development

c)

International Business for Resolution and Development

d)

International Bank for Reconstruction and Disinvestment

18.

During the economic crisis, the World bank and IMF provided India a loan of

a)

7 billion

b)

5 billion

c)

8 billion

d)

6 billion

19.

Self reliance means

a)

None

b)

Reducing inequality of income

c)

Adaptation of new technology

d)

Reducing the dependence on imports

20.

(a)   attempted to give more freedom to the entrepreneurs.

21.

Main organisation for facilitating globalisation

a)

WHO

b)

ILO

c)

WTO

d)

IPP

22.

A company hires regular services from external sources mostly from other countries which were previously provided internally

a)

Trading

b)

Multilateral

c)

None

d)

Outsourcing

23.

Steps taken towards liberalisation

a)

Delicensing of industries

b)

Dereservation of industries

c)

All of these

d)

Delicensing of imports

24.

Which of the following is not one among the Maharatnas PSU’s

A.

B.

C.

D.

a)

SAIL

b)

NTPC

c)

GAIL

d)

VSNL

25.

The process of removal of import restrictions which began in 1991 completed in phased manner with the removal of restrictions on

a)

515 items

b)

735 items

c)

715 items

d)

550 items