GK: Economic Reforms, LPG of India

1. Which of the following countries initiated its process of Economic Reforms in the year 1991?

A) India
B) China
C) Pakistan
D) Russia

... Answer is A)

2. IMF stand for:

A) International monetary Foundation
B) International Monetary Fund
C) Internal Monetary Fund
D) International Money foundation

... Answer is B)

3. what was the major proposal of new industrial policy (1991)?

A) NRI's will not be allowed for capital investment in India.
B) Facility of FDI upto 51 percent in high priority industries.
C) Import restrictions on technical know how for one year.
D) Abolition of industrial licencing except for six industries.

... Answer is D)

4. Financial sector reforms mainly related to:

A) banking sector
B) insurance sector
C) both (a) and (b)
D) stock market

... Answer is C)

5. General Aggrement on Trade and Tariff (GATT) was established in 1948 with how many countries as global trade partners?

A) 21
B) 22
C) 23
D) 24

... Answer is C)

6. Which is the latest tax introduced by the government of India?

A) Goods and Service tax
B) Value-added tax
C) Service tax
D) Corporation tax

... Answer is A)

7. Which of the following factors cause government to undertake programmes of public sector reforms?

A) Economic inefficiency in the production activities of the public sector
B) Rapid and unreasonable expansion of bureaucracy
C) Lack of accountability and corruption
D) All of the above

... Answer is D)

8. Devaluation of a currency means:

A) fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners
B) permitting the currency to seek its worth in the international market
C) fixing the value of the currency in conjuction with the movement in the value of a basket of pre-determined currencies.
D) reduction in the value of domestic currency in relation to other curriencies in the world.

... Answer is D)

9. Which duty has been removed to increase the competitive position of Indian goods in the international markets?

A) Custom duty
B) Export duty
C) Import duty
D) None of the above

... Answer is B)

10. When was World Trade Organisation (WTO) set up?

A) 1995
B) 1996
C) 1997
D) 1993

... Answer is A)

11. World Trade Organisation (WTO) is the successor of:

A) International Bank for Reconstruction and Development (IBRD)
B) General Aggrement on Trade and Tariff (GATT)
C) Assocation of South East Asian Nations
D) None of these

... Answer is B)

12.Which Act was removed to improve expansion and diversification of industries?

A) MRTP Act
B) Competition Act
C) Foreign exchange regulation Act
D) none of the above.

... Answer is A)
MRTP= Monopolistic and Restrictive Trade Practices.

13. Which of the following was/were the reason(s) for initiation of economic reforms in India?

A) High Fiscal deficit
B) Gulf crisis
C) Huge loss in balance of payment
D) All of these

... Answer is D)

14. International Bank for Reconstruction and Development (IBRD) is popularly known as:

A) World Bank
B) International Monetary Fund
C) American Express
D) Bank of Tokyo

... Answer is A)

15. In India, the new economic policy was initiated in:

A) 1990
B) 1991
C) 1992
D) 1993

... Answer is B)

16. The removing of barriers or restrictions set by the governent is called_________

A) Liberalisation
B) Investment
C) Privatisation
D) Globalisation

... Answer is A)

17. New Economic Policy implied replacement of LPQ by:

A) LPG
B) LGP
C) LQG
D) LQP

... Answer is A)

18. In India, financial sector is regulated and controlled by the:

A) Government
B) State Bank of India
C) RBI
D) commercial Bank

... Answer is C)

19. Outsourcing is an outcome of:

A) liberalisation
B) privatisation
C) globalisation
D) none of these

... Answer is C)

20. Privatisation promotes:

A) diversification of production
B) consumer's sovereignty
C) free play of market forces
D) all of these

... Answer is D)