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New Economic Policy of India

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

LPG policy focused on:

a)

Liberalisation

b)

globalisation

c)

privatisation

d)

all of the above

2.

Which of the following was the reason for initiation of economic reforms in 1991?

a)

Increase in fiscal deficit

b)

BoP crises

c)

Fall in foreign exchange reserve

d)

All of these

3.

Fiscal Deficit=

a)

Total expenditure of government – receipts

b)

Total expenditure of government – receipts(other than borrowings)

c)

Revenue expenditure of the government – Revenue receipts

d)

None of the above.

4.

Which of the following is NOT the reason for initiation of economic reforms in 1991?

a)

Poor Performance of PSUs

b)

Fall in Foreign exchange reserves

c)

Mounting fiscal deficit

d)

High Growth Rate of Population.

5.

Liberalisation implies:

a)

Reduction in government’s control over economy

b)

Encouragement to public sector

c)

Nationalism

d)

None of these

6.

Which Act has been enacted in the place of MRTP Act?

a)

Competition Act .

b)

Monopoly Act

c)

Licensing Act

d)

oreign Exchange Act.

7.

Laissez –fair policy is that policy in which:

a)

There is intervention by the government in the functioning of an economy

b)

There is intervention by the state in the functioning of an economy

c)

There is no intervention by the state in the functioning of an economy

d)

None of these

8.

Privatisation means :

a)

Allowing the private sector to set up industries which were previously reserved for the public

sector

b)

Existing enterprises of the public sector ar either wholly or partially sold to private sector

c)

Both of these

d)

None of these

9.

Integrating the economy of a country with the economies of other countries is known as:

a)

Liberalisation

b)

Globalisation

c)

Privatisation

d)

None of these

10.

After liberalisation, red-tapism in the government administrative departments has___________

a)

increased

b)

decreased

11.

Licensing (as in the case of liquor) is necessary for the _________________ of the

industry.

a)

regulation

b)

promotion

12.

GST is a/an __________________ tax

a)

direct

b)

indirect

13.

Economic policy of 1991 implied a U- turn of the then existing economic policy of

the government.

a)

true

b)

false

14.

Liberalisation means a system of Laissez – faire.

a)

true

b)

false

15.

Liberalisation and privatization are the core components of India’s new economic

policy, but globalization is not.

a)

true

b)

false

16.

Disinvestment policy is an important part of new economic policy in India.

a)

true

b)

false

17.

Who was the Prime Minister in 1991 to take bold and significance decision

a)

Atal Bihari Vajpayee

b)

P.V. Narasimha Rao

c)

Rajiv Gandhi

d)

Lal Bahadur Shastri

18.

Which Macroeconomic stabilization measures were taken in 1991?

a)

Control of inflation

b)

Fiscal correction

c)

Improvement in BOP

d)

All of the above

19.

What was the main reason for increase in import price during 90s?

a)

Increase in crude oil prices

b)

War with Pakistan

c)

Demonetization

d)

Non availability of solar vehicle’s

20.

Structural reforms are also known as

a)

Infrastructural development

b)

Supply side management

21.

What was the limit on companies Assets under MRTP Act?

a)

80 crores

b)

150 crores

c)

120 crores

d)

100 crores

22.

When was IRDA Act was passed?

a)

1995

b)

1999

c)

2000

d)

2010

23.

Which one of the following measure was taken to reduce inflation.

a)

Reduction of CRR and SLR

b)

Increase in CRR and SLR

c)

Lowering of exports

d)

None of the above

24.

New Economic Policy was initiated in the year

a)

1980

b)

1988

c)

1990

d)

1991

25.

Reforms related to revenue and expenditure of government is termed as

a)

Industrial Reforms

b)

Monetary Reforms

c)

Fiscal Reforms

d)

Financial Reforms

26.

Before 1991, all major post-Independence economic crises in India were caused by ______ forces whereas the 1991 crisis was the result of _____ forces.

a)

endogenous; exogenous

b)

exogenous; endogenous

c)

supply; demand

d)

demand; supply

27.

The policy mismanagement before 1991 had resulted in a twin deficit problem, the twin deficit referring to: 

a)

fiscal and trade deficit

b)

revenue and fiscal deficit

c)

revenue and budget deficit

d)

primary and fiscal deficit

28.

To  tackle  the  problems  arising  from  the  1991 crisis,  the  government  introduced  Macroeconomic  stabilization measures and structural reforms. These reforms including the initial steps in the second  half of the 1980s can be described as the ______.

a)

New Industrial Policy

b)

New Economic Policy

c)

New Financial Policy

d)

New Fiscal Policy

29.

 The reforms of the 1980s, which were largely in place by early 1988 include all of the following EXCEPT:

a)

Decline in canalized imports

b)

Fiscal adjustment

c)

Export incentives

d)

Relaxation  of  industrial  controls

30.

The  passing  of  the  Fiscal  Responsibility  and  Budget  Management  (FRBM)  Act in ______

brought the combined Centre-State fiscal deficit down drastically.

a)

2000

b)

2003 

c)

2005

d)

2007

31.

Under the Liberalized Exchange Rate Management System (LERMS) in 1992-93, ___ of foreign  exchange was to be surrendered at the lower official rate and ____ could be exchanged at the  higher  market  rate.

a)

50%; 50%

b)

60%; 40%

c)

40%; 60%

d)

30%; 70%

32.

NIP 1991 reduced  the industries reserved for public  sector  to just  two – _________.

a)

tidal energy and rail transport

b)

atomic energy and road transport

c)

atomic energy and rail transport

d)

atomic energy and water transport

33.

In NITI Aayog , NITI stands for?

a)

National Initiative for Transforming India

b)

National Initiative for Transition of India

c)

National Institute for Transforming India

d)

National Institution for Transition of India

34.

India is currently following a managed floating exchange rate system.

a)

True

b)

False

35.

The Narsimham Committee submitted two reports on financial sector reforms in which two years?

a)

1990 and 1998

b)

1991 and 1999

c)

1991 and 1998

d)

1991 and 2000