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WorksheetsNew Economic Policy of India
Total questions: 35
Worksheet time: 18mins
LPG policy focused on:
Liberalisation
globalisation
privatisation
all of the above
Which of the following was the reason for initiation of economic reforms in 1991?
Increase in fiscal deficit
BoP crises
Fall in foreign exchange reserve
All of these
Fiscal Deficit=
Total expenditure of government – receipts
Total expenditure of government – receipts(other than borrowings)
Revenue expenditure of the government – Revenue receipts
None of the above.
Which of the following is NOT the reason for initiation of economic reforms in 1991?
Poor Performance of PSUs
Fall in Foreign exchange reserves
Mounting fiscal deficit
High Growth Rate of Population.
Liberalisation implies:
Reduction in government’s control over economy
Encouragement to public sector
Nationalism
None of these
Which Act has been enacted in the place of MRTP Act?
Competition Act .
Monopoly Act
Licensing Act
oreign Exchange Act.
Laissez –fair policy is that policy in which:
There is intervention by the government in the functioning of an economy
There is intervention by the state in the functioning of an economy
There is no intervention by the state in the functioning of an economy
None of these
Privatisation means :
Allowing the private sector to set up industries which were previously reserved for the public
sector
Existing enterprises of the public sector ar either wholly or partially sold to private sector
Both of these
None of these
Integrating the economy of a country with the economies of other countries is known as:
Liberalisation
Globalisation
Privatisation
None of these
After liberalisation, red-tapism in the government administrative departments has___________
increased
decreased
Licensing (as in the case of liquor) is necessary for the _________________ of the
industry.
regulation
promotion
GST is a/an __________________ tax
direct
indirect
Economic policy of 1991 implied a U- turn of the then existing economic policy of
the government.
true
false
Liberalisation means a system of Laissez – faire.
true
false
Liberalisation and privatization are the core components of India’s new economic
policy, but globalization is not.
true
false
Disinvestment policy is an important part of new economic policy in India.
true
false
Who was the Prime Minister in 1991 to take bold and significance decision
Atal Bihari Vajpayee
P.V. Narasimha Rao
Rajiv Gandhi
Lal Bahadur Shastri
Which Macroeconomic stabilization measures were taken in 1991?
Control of inflation
Fiscal correction
Improvement in BOP
All of the above
What was the main reason for increase in import price during 90s?
Increase in crude oil prices
War with Pakistan
Demonetization
Non availability of solar vehicle’s
Structural reforms are also known as
Infrastructural development
Supply side management
What was the limit on companies Assets under MRTP Act?
80 crores
150 crores
120 crores
100 crores
When was IRDA Act was passed?
1995
1999
2000
2010
Which one of the following measure was taken to reduce inflation.
Reduction of CRR and SLR
Increase in CRR and SLR
Lowering of exports
None of the above
New Economic Policy was initiated in the year
1980
1988
1990
1991
Reforms related to revenue and expenditure of government is termed as
Industrial Reforms
Monetary Reforms
Fiscal Reforms
Financial Reforms
Before 1991, all major post-Independence economic crises in India were caused by ______ forces whereas the 1991 crisis was the result of _____ forces.
endogenous; exogenous
exogenous; endogenous
supply; demand
demand; supply
The policy mismanagement before 1991 had resulted in a twin deficit problem, the twin deficit referring to:
fiscal and trade deficit
revenue and fiscal deficit
revenue and budget deficit
primary and fiscal deficit
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 ______.
New Industrial Policy
New Economic Policy
New Financial Policy
New Fiscal Policy
The reforms of the 1980s, which were largely in place by early 1988 include all of the following EXCEPT:
Decline in canalized imports
Fiscal adjustment
Export incentives
Relaxation of industrial controls
The passing of the Fiscal Responsibility and Budget Management (FRBM) Act in ______
brought the combined Centre-State fiscal deficit down drastically.
2000
2003
2005
2007
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.
50%; 50%
60%; 40%
40%; 60%
30%; 70%
NIP 1991 reduced the industries reserved for public sector to just two – _________.
tidal energy and rail transport
atomic energy and road transport
atomic energy and rail transport
atomic energy and water transport
In NITI Aayog , NITI stands for?
National Initiative for Transforming India
National Initiative for Transition of India
National Institute for Transforming India
National Institution for Transition of India
India is currently following a managed floating exchange rate system.
True
False
The Narsimham Committee submitted two reports on financial sector reforms in which two years?
1990 and 1998
1991 and 1999
1991 and 1998
1991 and 2000
