This quiz works best with JavaScript enabled. Home > General Knowledge > Indian Economy > History > New Economic Policy Of 1991 – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books New Economic Policy Of 1991 Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. WHICH OF THE FOLLOWING INDUSTRIES ARE RESERVED FOR THE PUBLIC SECTOR A) DEFENCE EQUIPMENTS. B) ATOMIC ENERGY GENERATION. C) CEMENT. D) BOTH 1 AND 2. Show Answer Correct Answer: D) BOTH 1 AND 2. 2. Mudra Bank was set up to meet the credit needs of the: A) Farmers. B) Small Enterprises. C) Large Enterprises. D) Exporters. Show Answer Correct Answer: B) Small Enterprises. 3. Reforms related to revenue and expenditure of government is termed as A) Industrial Reforms. B) Monetary Reforms. C) Financial Reforms. D) Fiscal Reforms. Show Answer Correct Answer: D) Fiscal Reforms. 4. Liberalisation means a system of laissez-faire A) True. B) False. Show Answer Correct Answer: B) False. 5. Which of the following reforms were initiated under liberalisation by Govt A) Industrial sector reforms. B) Tax reforms. C) Financial sector reforms. D) All of these. Show Answer Correct Answer: D) All of these. 6. Which of following step is not taken by the government to execute policy of privatisation? A) Disinvestment of Public Sector. B) Setting up of BIFR. C) No restriction on expansion of business. D) None of the above. Show Answer Correct Answer: C) No restriction on expansion of business. 7. Which of following step is taken by the government to execute policy of privatisation? A) Setting up of Board of Industrial and Financial Reconstruction(BIFR). B) Reduction of Import Duty. C) Abolition of Export duty. D) None of the above. Show Answer Correct Answer: A) Setting up of Board of Industrial and Financial Reconstruction(BIFR). 8. The recent demonetization took place in A) December 8, 2016. B) November 8, 2015. C) December 8, 2015. D) November 8, 2016. Show Answer Correct Answer: D) November 8, 2016. 9. Frequent fixing the price of goods and services is part of A) Liberalisation. B) Privatisation. C) Both. D) None of the above. Show Answer Correct Answer: A) Liberalisation. 10. Choose the correct alternative showing chronological order of the following eventsi. establishments of GATTii. Demonetisation in Indiaiii. Maharatna status to different companies.iv. Foreign Exchange Management Act A) Iii, i, iv, ii. B) Iv, iii, i, ii. C) Iv, ii, i, iii. D) I, iv, iii, ii. Show Answer Correct Answer: D) I, iv, iii, ii. 11. Assertion (A) Post liberalization, the sale of domestic goods has increaded.Reasoning (R) The demand for imported goods had increased due to liberal policy. A) Is True but (R) is False. B) Is False but (R) is True. C) And (R) both are True and (R) is the correct explanation. D) And (R) both are True but (R) is not the correct explanation of (A). Show Answer Correct Answer: D) And (R) both are True but (R) is not the correct explanation of (A). 12. All indirect taxes have been subsumed under: A) State government tax. B) Central Government tax. C) Goods and service tax. D) Value added tax. Show Answer Correct Answer: C) Goods and service tax. 13. LPG policy focused on A) Liberalisation. B) Privatisation. C) Globalisation. D) All of these. Show Answer Correct Answer: D) All of these. 14. Which of following is a part of Globalisation? A) Integration of different countries of the world. B) Giving more freedom. C) Increasing participation of private sector. D) Reducing number of industries. Show Answer Correct Answer: A) Integration of different countries of the world. 15. Outsourcing is an off-shoot of: A) Privatisation. B) Globalization. C) Liberalisation. D) Nationalisation. Show Answer Correct Answer: B) Globalization. 16. Which of the following is not a benefit of demonstration in India? A) Control over corruption. B) Counterfeiting use of high denomination notes for illegal activities. C) Control on black money. D) More demanding Customers. Show Answer Correct Answer: D) More demanding Customers. 17. What was the main reason for increase in import price during 90s? A) Non availability of solar vehicle's. B) Demonetization. C) Increase in crude oil prices. D) War with Pakistan. Show Answer Correct Answer: C) Increase in crude oil prices. 18. ..... refers to the transfer of assets or services function from public to private ownership. A) Globalisation. B) Privatisation. C) Disinvestment. D) Liberalisation. Show Answer Correct Answer: B) Privatisation. 19. Recently there are how many types of GST in India? A) 5. B) 2. C) 3. D) 4. Show Answer Correct Answer: D) 4. 20. Which one of the following measure was taken to reduce inflation. A) Reduction of CRR and SLR. B) Increase in CRR and SLR. C) Lowering of exports. D) None of the above. Show Answer Correct Answer: A) Reduction of CRR and SLR. 21. WTO was established in the year A) 2015. B) 1885. C) 1995. D) 2005. Show Answer Correct Answer: C) 1995. 22. Liberalisation implies A) Reduction in government's control over economy. B) Encouragement to public sector. C) Nationalisation. D) None of these. Show Answer Correct Answer: A) Reduction in government's control over economy. 23. When was IRDA Act was passed? A) 2000. B) 2010. C) 1999. D) 1995. Show Answer Correct Answer: C) 1999. 24. What was the limit on companies Assets under MRTP Act? A) 80 crores. B) 150 crores. C) 120 crores. D) 100 crores. Show Answer Correct Answer: D) 100 crores. 25. Who was the Prime Minister in 1991 to take bold and significance decision A) Atal Bihari Vajpayee. B) P.V. Narasimha Rao. C) Rajiv Gandhi. D) Lal Bahadur Shastri. Show Answer Correct Answer: B) P.V. Narasimha Rao. 26. Laissez-faire policy is that in which A) There is no intervention by the government in the functioning of an economy. B) There is intervention by the state in the functioning of an economy. C) There is no intervention by the state in the functioning of an economy. D) None of these. Show Answer Correct Answer: A) There is no intervention by the government in the functioning of an economy. 27. Which of following is not a part of Liberalisation? A) Reduction in Tariff. B) Removal of licencing policy. C) Simplifying procedure. D) Integration of different countries of the world. Show Answer Correct Answer: D) Integration of different countries of the world. 28. Trade between two contries is known as A) Multi lateral trade. B) Bilateral trade. C) Unilateral trade. D) None of above. Show Answer Correct Answer: B) Bilateral trade. 29. Which of following is not a major component of new economic policy? A) Privatisation. B) Modernisation. C) Globalisation. D) Liberalisation. Show Answer Correct Answer: B) Modernisation. 30. 'Make in India' is an example of A) Liberalisation. B) Privatisation. C) Globalisation. D) None of above. Show Answer Correct Answer: A) Liberalisation. 31. Reforms in indirect taxes categorised into: A) Agricultural sector reforms. B) Reforms in industrial sector. C) Financial sector reforms. D) External sector reforms. Show Answer Correct Answer: C) Financial sector reforms. 32. ..... refers to disposal of equity of public sector units in the market. A) Disinvestment. B) Liberalisation. C) Privatisation. D) Globalisation. Show Answer Correct Answer: A) Disinvestment. 33. RBI WAS SETUP IN A) 1991. B) 1960. C) 1935. D) 1952. Show Answer Correct Answer: C) 1935. 34. Outsourcing is good for India because: A) It provides employment to large number of unemployed. B) It provides excellence in a particular field. C) Both (a) and (b). D) Neither (a) nor (b). Show Answer Correct Answer: C) Both (a) and (b). 35. Since 1951, India has been ..... economy. A) Socialist. B) Mixed. C) Feudalistic. D) Capitalist. Show Answer Correct Answer: B) Mixed. 36. When was new economic policy announced? A) June, 1991. B) May, 1991. C) July, 1991. D) January, 1991. Show Answer Correct Answer: C) July, 1991. 37. Which of the following was not a feature of Demonetisation? A) Tax administration. B) Channelizing savings into formal financial system. C) Promotion of black money. D) Cash less economy. Show Answer Correct Answer: C) Promotion of black money. 38. ..... involves deregulation and reduction of government controls and greater autonomy of private investment to make economy more competitive. A) Globalisation. B) Privatisation. C) Liberalisation. D) All of these. Show Answer Correct Answer: C) Liberalisation. 39. HEAD OFFICE OF WTO IS LOCATED IN A) DELHI. B) GENEVA. C) BERLIN. D) NEW YORK. Show Answer Correct Answer: B) GENEVA. 40. Which international organisation replaced general agreement on trade and tariff (GATT): A) United Nations. B) World Trade Organisation. C) International Monetary Fund. D) World Health Organisation. Show Answer Correct Answer: B) World Trade Organisation. 41. ..... refers to reduction in the value of domestic currency by the government A) Appreciation of rupee. B) Depreciation of rupee. C) Devaluation of rupee. D) Revaluation of rupee. Show Answer Correct Answer: C) Devaluation of rupee. 42. The policy of planned disinvestments of the public sector A) Liberalisation. B) Privatisation. C) Globalisation. D) None of above. Show Answer Correct Answer: B) Privatisation. 43. Structural reforms are also known as A) Supply side management. B) Infrastructural development. Show Answer Correct Answer: A) Supply side management. 44. Which Macroeconomic stabilization measures were taken in 1991? A) Control of inflation. B) Fiscal correction. C) Improvement in BOP. D) All of the above. Show Answer Correct Answer: D) All of the above. 45. Trade between two countries is known as: A) Bilateral trade. B) Multilateral trade. C) Both (a) and (b). D) Neither (a) not (b). Show Answer Correct Answer: A) Bilateral trade. 46. After Independence, India had adopted ..... A) Capitalism. B) Communism. C) Mixed Economy. D) Socialism. Show Answer Correct Answer: C) Mixed Economy. 47. Reduction of Import Duty is part of A) Liberalisation. B) Globalisation. C) Both. D) None of the above. Show Answer Correct Answer: C) Both. 48. Abolition of export duty is part of A) Globalisation. B) Privatisation. C) Both. D) None of the above. Show Answer Correct Answer: A) Globalisation. 49. Abolishing licensing requirement in most of the industries is example of A) Liberalisation. B) Privatisation. C) Globalisation. D) None of above. Show Answer Correct Answer: A) Liberalisation. 50. Find the odd word out:Liberalization dealt with the following- A) NTPC. B) FERA. C) SEBI. D) MRTP. Show Answer Correct Answer: A) NTPC. 51. ..... refers to contracting out some of its activities to a third party which were earlier performed by the organisation A) Liberalisation. B) Privatisation. C) Globalisation. D) Outsourcing. Show Answer Correct Answer: D) Outsourcing. 52. INDIA ASKED FOR A LOAN OF ..... FROM IMF IN 1991 A) $ 10 BILLION. B) $ 7 BILLION. C) $ 200 MILLION. D) NONE. Show Answer Correct Answer: B) $ 7 BILLION. 53. The policy encourage foreignprivate participation in industrial development A) Liberalisation. B) Privatisation. C) Globalisation. D) None of above. Show Answer Correct Answer: C) Globalisation. 54. Relaxation or removal of strict rules and regulation is part of A) Liberalisation. B) Privatisation. C) Globalisation. D) All of the above. Show Answer Correct Answer: A) Liberalisation. 55. Which of the following economic reforms we're initiated by the government under liberalisation? A) Industrial sector reforms. B) Financial sector reforms. C) Tax reforms. D) All of these. Show Answer Correct Answer: D) All of these. 56. Components of New Economic Policy ( NEP) A) Liberalization. B) Privatization. C) Globalization. D) All of the above. Show Answer Correct Answer: D) All of the above. 57. Which one is not the features of privatisation A) Transfer of ownership to the private sector. B) Revival of sick units. C) Loss of budgetary support to public sectors. D) Export promotion. Show Answer Correct Answer: D) Export promotion. 58. Which of the following was the reason for initiation of economic reforms in 1991? A) Increase in fiscal deficit. B) (b) BoP crises. C) Fall in foreign exchange reserve. D) All of these. Show Answer Correct Answer: D) All of these. 59. Industrial sectors reforms are A) Abolition of industrial licensing. B) Reduced the role of public sector. C) Removal of MRTP limit. D) All of the above. Show Answer Correct Answer: D) All of the above. 60. Privatization of the public sector enterprises (PSEs) by selling off part of the equity of PSEs to the public is known as ..... A) Disinvestment. B) Devaulation. C) Liberalisation. D) Globalisation. Show Answer Correct Answer: A) Disinvestment. 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