MCQ of Indian Reforms Since 1991 | Class 12 | Economics | Part B |

MCQ of Indian Reforms Since 1991 | Class 12 | Economics | Part B |

Q1. ____ refer to a set of economic policies directed to accelerate the pace of growth and development.
a. Economic development
b. Economic guideline
c. Economic Reforms
d. Economic principles

Answer: Economic Reforms

Q2. When did the government of India initiate a series of economic reforms?
a. 1990
b. 1991
c. 1992
d. 1994

Answer : 1991

Q3. Economic reforms came to be known as
a. Economic policy
b. New Economic Power (NEP)
c. New Economic Policy( NEP)
d. None of these

Answer: New Economic Policy (NEP)

Q4. Three broad components of NEP are 
a. Licensing , patrolling, globalisation
b. Liberalisation, patrolling, commercialisation
c. Liberalisation, privatisation, globalisation
d. None of these
Answer : Liberalisation, Privatisation, Globalisation

Q5. LPG was set to replace ____
a. LQR
b. LQY
c. LPR
d. LQP
Answer: LQP

Related 

Q6. The policy of liberalisation was brought in place of ____ for the industries and trade.
a. Livelihood
b. Quotas
c. Licensing
d. Permits
Answer: Licensing

Q7. The policy of privatisation was brought in place of____ for the industrialists.
a. Livelihood
b. Quotas
c. Licensing
d. Permits
Answer: Quotas

Q8. The policy of____  was brought in place of permits for exports and imports.
a. Liberalisation
b. Privatisation
c. Licensing
d. Globalisation
Answer: Globalisation

Q9. Need for NEP or economic reforms was felt owing to :
a. Rise in foreign exchange reserves
b. BoP Crises
c. High fiscal Deficit
d. Both b and c
Answer: Both b and c

Q10. Liberalisation of the economy means:
a. Freedom of the selling anything from direct or physical controls imposed by the government
b. Freedom of the producing units from direct or physical controls imposed by the government
c. the process of involving the private sector in the ownership or operation of a state owned enterprise
d. a process associated with increasing openness, growing economic interdependence and deepening economic integration in the world economy.
Answer : Freedom of the producing units from direct or physical controls imposed by the government

We would love to see you going through MCQ of Indian Economy on the Eve of Independence, MCQ of Human Capital Formation, MCQ of Rural Development, MCQ of Poverty for better clarity and understanding of the chapters.

Q11. Globalisation refers to :
a. Freedom of the selling anything from direct or physical controls imposed by the government
b. Freedom of the producing units from direct or physical controls imposed by the government
c. the process of involving the private sector in the ownership or operation of a state owned enterprise
d. a process associated with increasing openness, growing economic interdependence and deepening economic integration in the world economy .
Answer: A process associated with increasing openness, growing economic interdependence and deepening economic integration in the world economy.

Q12. The process of involving the private sector in the ownership or operation of a state owned enterprise is known as
a. Liberalisation
b. Privatisation
c. Licensing
d. Globalisation
Answer: Privatisation

Q13. Economic Reforms were based on the assumption that ____ would drive the economy towards the path of competitive growth and development.
a. Government
b. Market forces
c. Public
d. Foreign leaders
Answer: Market forces

Q14. Economic reforms under liberalisation do not include :
a. Industrial sector reforms
b. Public sector reforms
c. Financial sector reforms
d. Fiscal sector reforms
Answer: Public sector reforms

Q15. In which reforms Abolition of industrial licensing, contraction of public sector, are included?
a. Industrial sector reforms
b. Public sector reforms
c. Financial sector reforms
d. Fiscal sector reforms
Answer : Industrial Sector reforms

Q16. Banking and non-banking financial institutions, stock exchange market, foreign exchange market are included in which reforms?
a. Industrial sector reforms
b. Public sector reforms
c. Financial sector reforms
d. Fiscal sector reforms
Answer: Financial sector reforms

Q17. Who regulates and controls the Financial Sector in India?
a. Local banks
b. RBI
c. Public
d. Political parties
Answer: RBI

Q18. Liberalisation implied a sustainable shift in the role of the RBI from ____ to____
a. a facilitator to a regulator
b. a regulator to a facilitator
c. a producer to a seller
d. a seller to a producer
Answer : A regulator to a facilitator

Q19. Which of the following are the examples of Foreign Institutional Investors?
a. RBI
b. Merchant bankers
c. Mutual funds
d. Both b and c
Answer: Both b and c

Q20. Fiscal policy refers to ____ policy of the government
a. Money
b. Revenue and expenditure
c. Capital investing
d. None of these
Answer: Revenue and Expenditure

Q21. Principal components of fiscal reforms are :
a. Foreign exchange reforms
b. Foreign trade policy reforms
c. Tax reforms
d. None of these
Answer : Tax Reforms

Q22. Example of direct taxes are 
a. Income tax
b. GST
c. Wealth tax
d. Both a and c
Answer : Both a and c

Q23. Foreign exchange reforms and foreign trade policy reforms are included in:
a. Industrial sector reforms
b. Financial sector reforms
c. Fiscal reforms
d. External sector reforms
Answer: External Sector Reforms

Q24. Foreign exchange reforms were initiated in ____
a. 1989
b. 1990
c. 1991
d. 1992
Answer : 1991

Q25. ____ implies Lowering the value of our currency in relation to other currencies of the world.
a. Depreciation
b. Depression
c. Devaluation
d. Revaluation
Answer: Devaluation

Q26. Foreign trade policy underwent a sustainable change in the wake of ____
a. Liberalisation
b. Privatisation
c. Licensing
d. Globalisation
Answer: Liberalisation

Q27. What is outsourcing?
a. It refers to thinking before hand
b. It refers to selling off share capital of PSUs to the private entrepreneurs
c. It refers to a system of hiring business services from the outside world
d. None of these
Answer : It refers to a system of hiring business services from the outside world

Q28. What is disinvestment?
a. It refers to thinking before hand
b. It refers to selling off share capital of PSUs to the private entrepreneurs
c. It refers to a system of hiring business services from the outside world
d. None of these
Answer : It refers to selling off share capital of PSUs to the private entrepreneurs

Q29. Which of the following is the example of indirect tax?
a. Income tax
b. Wealth tax
c. Goods and service tax
d. None of these
Answer : Goods and service tax

Q30. Which generation reforms do not require any legislative action?
a. First
b. Second
c. Third
d. Fourth
Answer : First

Q31. Which generation reforms require legislative action?
a. First
b. Second
c. Third
d. Fourth
Answer : Second

Q32. ____ refers to those set of measures which affect the entire economy and are therefore, pervasive in nature.
a. Macroeconomic stabilisation
b. Microeconomic structural adjustments
c. Microeconomic stabilisation
d. Macroeconomic structural adjustments
Answer : Macroeconomic Stabilisation

Q33. Tariff barriers mainly refer to
a. Quota – barriers
b. Barriers on exports
c. Barriers on imports through high import duty
d. None of these
Answer : Barriers on imports through high import duty

Q34. Which of the following highlights the negative impacts of LPG policies in India?
a. Vibrant economy
b. A shift from monopoly market to competitive market
c. Spread of consumerism
d. Flow of private foreign investment
Answer : Spread of consumerism

Q35. Privatisation implies supremacy of ____
a. Social interest over self interest
b. Self interest over social interest
c. Social issues over self issues
d. Self issues over social issues
Answer : Self interest over social interest

Q36. Diversification of production is promoted through
a. Liberalisation
b. Privatisation
c. Licensing
d. Globalisation
Answer: Privatisation

Q37. Bilateral trade agreements refer to 
a. Trade agreements of one state with the other
b. Trade agreements of one country with many countries of the world
c. Trade agreements of one country with the other
d. Trade agreements between two sole proprietors
Answer : Trade agreements of one country with the other

Q38. Multilateral trade agreements refer to
a. Trade agreements of one state with the other
b. Trade agreements of one country with many countries of the world
c. Trade agreements of one country with the other
d. Trade agreements between two sole proprietors
Answer : Trade agreements of one country with many countries of the world

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