Economic Reforms Since 1991 CBSE Questions & Answers

Economic Reforms Since 1991

This is Economics Class 11 Economic Reforms Since 1991 CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Fiscal deficit is that part of total government expenditure which is met by
  • A
    Imposing more taxes
  • B
    Selling shares held by government
  • C
    Borrowings
    Correct
  • D
    All
2
Inwards foreign direct investment is useful because
  • A
    Brings in modern technology
  • B
    Brings in foreign exchange
  • C
    Brings in management expertise
  • D
    All
    Correct
3
Industrial policy of 1991 was
  • A
    Anti-private sector policy
  • B
    Pro-private sector policy
  • C
    Anti-public sector policy
  • D
    Pro-public sector policy
    Correct
4
The most urgent problem with prompted the introduction of New Economic Policy in 1991 was
  • A
    Poor performance of public sector
  • B
    High tax rate leading to tax evasion
  • C
    Foreign exchange crisis
    Correct
  • D
    All of these
5
Reason which gives importance to privatisation
  • A
    Decline in private monopoly
  • B
    Favour the objective of social welfare
  • C
    Reduce the cost by minimising wastages
    Correct
  • D
    Increase employment due to exit policy for sick public enterprises
6
The main changes in fiscal policy are
  • A
    All of these
  • B
    Quantitative restrictions on import and exports reduced
    Correct
  • C
    System of fixed exchange rate converted into market determined exchange rate
  • D
    Use of foreign exchange made more liberal
7
The following are the changes of which policy (i) SLR and CRR reduced by RBI to increase the availability of funds (ii) Bank rate reduced (iii) SEBI mad statutory
  • A
    None
  • B
    Foreign trade policy
  • C
    Fiscal policy
  • D
    Monetary policy
    Correct
8
Match the following. Options are as below
Question 8 figure 1
  • A
    a(ii), b(i), c(iii)
    Correct
  • B
    a(ii), b(iii), c(i)
  • C
    a(iii), b(i), c(ii)
  • D
    a(i), b(ii), c(iii)
9
Under what condition did the world bank and IMF agree to help us during the crisis
  • A
    All of these
    Correct
  • B
    Reduce the role of government
  • C
    Removing restrictions on private sectors
  • D
    Remove trade restrictions
10
Excess of import over export results in
  • A
    Decline in foreign exchange reserve
    Correct
  • B
    Increase in foreign exchange reserve
  • C
    No change in foreign exchange reserve
  • D
    All of these
11
The new economic policy seeks to replace
  • A
    LLP raj
  • B
    LPG raj
  • C
    LQG raj
  • D
    LQP raj
    Correct
12
Which of the following is not the one of those steps taken in financial sector reforms
  • A
    Lifting of regulations on interest rate of deposit
  • B
    Liberalisation of branching regulations for both private and public sector banks
  • C
    Delicensing of industries
    Correct
  • D
    Reduction of barriers for entry of private banks
13
Under the new trade policy import licensing was abolished except in case of
  • A
    Textile industries
  • B
    Consumer goods industries
  • C
    IT industries
  • D
    Hazardous and environmentally sensitive industries
    Correct
14
Liberalisation leads to some limitation
  • A
    Lesser participation of foreign investors
  • B
    It neglects the social welfare
    Correct
  • C
    No improvement in productivity
  • D
    No improvement in financial sector
15
Main changes in foreign trade policy
  • A
    All of these
    Correct
  • B
    Quantitative restrictions on import and exports reduced
  • C
    Use of foreign exchange made more liberal
  • D
    System of fixed exchange rate converted into market determined exchange rate