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question_answer1)
Direction: Q 1 to 5 |
Read the following case study and answer the given questions. |
In the late 1980s, government expenditure began to exceed its revenue by such large margins that meeting the expenditure through borrowings became unsustainable. Prices of many essential goods rose sharply. Imports grew at a very high rate without matching growth of exports. Foreign exchange reserves declined to a level that was not adequate to finance imports for more than two weeks. There was also not sufficient foreign exchange to pay the interest that needs to be paid to international lenders. Also no country or international funder was willing to lend to India. India approached the World Bank and the International Monetary Fund (IMF) and received 7 billion as loan to manage the crisis. India agreed to the conditionalities of World Bank and IMF and announced the New Economic Policy (NEP). This new set of policy measures changed the direction of our development strategies. |
Which of the given reason is incorrect with regard to the introduction of economic reforms in 1991 in India?
A)
A high level of fiscal deficit done
clear
B)
Inflationary pressures done
clear
C)
Persistent level of unemployment and poverty done
clear
D)
Depletion of the foreign exchange reserves done
clear
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question_answer2)
The new economic policy of 1991 in context of Indian economy implies
A)
liberating trade and industry from controls and restrictions done
clear
B)
greater role of private sector in the functioning of an economy done
clear
C)
shifting from closed economy to an open economy model done
clear
D)
All of the above done
clear
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question_answer3)
The other name of World Bank is .......
A)
Integrated Bank for Reconstruction and Development (IBRD) done
clear
B)
International Bank for Resource and Development (IBRD) done
clear
C)
International Bank for Reconstruction and Development (IBRD) done
clear
D)
Integrated Bank for Resource and Development (IBRD) done
clear
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question_answer4)
IMF and World Bank granted
7 billion loan to India with a major restriction to follow a closed economy model. The given statement is
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't say, there were no such conditionalities done
clear
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question_answer5)
The major conditionalities put forward by IMF and World Bank before granting 7 billion loan to India were |
(i) Removal of trade barriers between India and other countries |
(ii) Removal of the restrictions on the private sector |
(iii) Focus on development by taking care of environment |
(iv) Liberating trade and industry from unwanted government control and restrictions |
A)
(i),(iii) and (iv) done
clear
B)
(i),(ii) and (iii) done
clear
C)
(i),(ii) and (iv) done
clear
D)
(ii),(iii) and (iv) done
clear
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question_answer6)
Direction: Q. 6 to 10 |
Read the following case study and answer the questions. |
On 8th November, 2016, the Prime Minister of India, Narendra Modi, took the nation by surprise by announcing that the government was demonetising currency with denominations of 500 or 1,000 rupees, with immediate effect. This amounted to the demonetisation of 86 percent of the Indian currency in circulation. Holders of the demonetised currency were given till 31st December, 2016 to exchange their demonetised bills for newly issued currency, which would be in denominations of 500 and 2,000 rupees. |
Demonetisation as a tool for fighting crime, tax evasion, and activities in the underground economy has been advocated in the past. The argument rests on the premise that, in an international context, many underground economic activities are financed using large-denomination currency notes. A unique aspect of the Indian measure was that it was carried out during a period of economic stability, but with very little time given to the public to exchange their demonetised bills. This created the potential for a lot of disruption and inconvenience since the demonetised bills, especially the 500 rupee bill (worth about US Dollar 14 at prevailing exchange rates), were heavily in use for daily transactions. |
Demonetisation implies ......... .
A)
stripping the legal tender status of a currency done
clear
B)
removing certain currency notes from the market and investing them in government bonds done
clear
C)
deliberately reducing the flow of certain currency bills for a specified period of time done
clear
D)
Allot the above done
clear
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question_answer7)
The major reason(s) given for demonetisation of currency bills
A)
Seize the wealth that was accumulated through undeclared income done
clear
B)
Eliminate the scourge to counterfeit currency circulating in an economy done
clear
C)
Pushing a nation towards digitalisation done
clear
D)
All of the above done
clear
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question_answer8)
Demonetisation of currency bills in 2016 has been the first episode of demonetisation in context of Indian economy. The given statement is
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Partially false done
clear
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question_answer9)
The recent demonetisation in which Prime Minister Narendra Modi demonetised Rs. 500 and Rs. 1,000 currency bills was announced on
A)
8th November, 2017 done
clear
B)
8th November, 2016 done
clear
C)
6th November, 2017 done
clear
D)
6th November, 2016 done
clear
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question_answer10)
Which of the following gives the correct meaning of legal tender status?
A)
Legally recognised payment instrument used to fulfil a financial commitment done
clear
B)
Legally recognised payment instrument used to fulfil debts of more than Rs. 1 crore done
clear
C)
Legally recognised payment instrument used to fulfil debts of less than Rs. 1 crore done
clear
D)
None of the above done
clear
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question_answer11)
Direction: Q. 11 to 15 |
Read the following case study and answer the questions. |
The process of globalisation through liberalisation and privatisation policies has produced positive as well as negative results both for India and other countries. In the Indian context, some studies have stated that the crisis that erupted in the early 1990s was basically an outcome of the deep-rooted inequalities in Indian society and the economic reform policies initiated as a response to the crisis by the government, with externally advised policy package, further aggravated the inequalities. |
The New Economic Policy 1991 has increase the income and quality of consumption of only high-income groups and the growth has been concentrated only in some select areas in the services sector such as telecommunication, information technology, finance, entertainment, travel and hospitality services, real estate and trade, rather than vital sectors such as agriculture and industry which provide livelihoods to millions of people in the country. |
Economic reforms achieved the planning objective of growth with equity. The given statement is
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't say done
clear
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question_answer12)
Which of the following factor is incorrect with regard to the growth of service sector during the reform period?
A)
Availability of cheap and skilled labour done
clear
B)
Growth of IT sector and spill over effects on the use of internet, telecommunications, mobile phones etc. done
clear
C)
Huge inflow of foreign capital and investments done
clear
D)
Increased tax rates on foreign investments with no tax holidays done
clear
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question_answer13)
The major reason explaining the decline in growth rate of agricultural sector during the reform period was/were
A)
decline in public investment in this sector done
clear
B)
removal of fertilizer subsidy increased the cost of production which significantly affected small farmers done
clear
C)
reduction in export duties resulted Indian farmers to face international competition done
clear
D)
All of the above done
clear
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question_answer14)
Assertion [A] Industrial sector performed poorly during the reform period. |
Reason [R] Inadequate investment in infrastructure and cheaper imports resulted in poor performance. |
A)
Both Assertion [A] and Reason [R] are true and Reason [R] is the correct explanation of Assertion [A] done
clear
B)
Both Assertion [A] and Reason [R] are true, but Reason [R] is not the correct explanation of Assertion [A] done
clear
C)
Assertion [A] is true, but Reason [R] is false done
clear
D)
Assertion [A] is false, but Reason [R] is true done
clear
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question_answer15)
As a result of economic reform, ......... sector experienced highest growth rate.
A)
agricultural done
clear
B)
industry done
clear
C)
services done
clear
D)
All sectors experienced equal growth rate done
clear
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