SECTION A-(10×1=10)

(ANSWER ALL QUESTIONS)

1.Liberalisation means
a. Reducing number of reserved industries from 17 to 8.
b. Liberating the industry, trade and economy from unwanted restrictions
c. Opening up of economy to the world by attaining international competitiveness
d. Free determination of interest rates.
2. One of the objectives of industrial licensing policy in India was to ensure
a. Creation of adequate employment opportunities
b. Free flow of foreign capital in Indian industries
c. Use of modern technology
d. Balanced industrial development across regions.
3. Which is not a monetary policy tool?
a. Discount rate
b. Open market operations
c. Balance accounts
d. Reserve requirements
4. Inflation is a sustained increase in the general level of
a. Accounts
b. Incom
c. Prices
d. Profit
5. Which of the following body is not related to the WTO
a. Dispute settlement body
b. Trade policy review bodyi
c. Council of trade in goods
d. Exchange rate management body
6. Cabinet has approved India's stand on what at the WTO.
a. Food security
b. Water security
 c. Both of the above
d. None of the above
7. Brent index is associated with
a. Crude oil price
b. Copper future prices
c. Gold future prices
d. Shipping rate index.
8. The policy of govt., related to Export and Import is?
a. IMEX policy
b. EXIM policy
c. Export policy
d. None of the above
9. Interim budget is also known as
a. Mini budget
b. Vote on account
c. Both a and b
d. None of these.
10. What is the biggest income of the central government in 2019- 20 budget?
a. Goods and Service tax
b. Corporation tax
c. Borrowings and other liabilities
d. a and b both are equal
SECTION B-(5×6=30)
(ANSWER ALL QUESTIONS)
11.a.What is industrial policy? what are it’s objectives
Or
b. Explain the criticisms of industrial licensing
12.a. Write the instruments of fiscal policy
Or
 b. Discuss demonetisation
13.a. What are the principles of WTO
Or
b. State the difference between GATT & WTO
14.a. Write the salient features of new export import policy.
Or
b. Discuss the code of conduct to guide and regulate the MNCs
15.a. State the importance of budget
Or
b. Explain the major steps in 1991 reforms.

SECTION C-(5×10=50)
(ANSWER ALL QUESTIONS)
16. a.Explain the types of FDI.
Or
b. Comment on Industrial policy 1991.

17. a.Briefly explain monetary policy intervention

Or
b. Write about the money market in India
18.a .Bring out the arguments for and against India’s membership of WTO.
Or
b. What is a trading block? What are the effects of trading block.
19. a . Summarize FEMA
Or
b. Brief the merits and demerits of MNCs
20.a.Explain the reforms for Ache Din
Or
b. Briefly explain the Union and State Budgets
SECTION D-(10×1=10)
 The Economic Times ,22 October 2000, reported that Reliance Industries entered
into a swap deal for the export and import of 36 cargoes of naphtha over the next six months.
Accordingly, three cargoes of 50,000 tonnes each were to be exported every month from
Reliance petroleum's Jamnagar refinery and three cargoes of the same amount were to be
imported to the Reliance Industries’ Hazira facility. The deal was done through Japanese
traders Mitsubishi, Marubeni, Itochu, IdCmitsu and Shell. The export was done at around
Arabian Gulf prices plus $22.
Reliance, needs petrochemical grade naphtha for its Hazira facility which is not being
Produced at Jamnagar . Therefore, it’s cracker at Hazira gets petrochemical grade naphtha
from the international markets in return for Reliance petroleum selling another grade of
naphtha from its Jamnagar refinery to the international oil trade.
If RIM imports naphtha for Hazira petrochemical plant, the company does not have to
pay the 24 percent sales tax, which it will have to pay on a local purchase, even if it is from
Reliance Petro will also get a 10 percent duty drawback on its crude imports if it exports
naphtha from the refinery at Jamnagar.
The export of naphtha with Japanese traders is being looked as a coup for Reliance as it
gives the company an entry into the large Japanese market.
Indian refineries have a freight advantage over the Singapore market and can quote
better prices.
Questions
1. Examine the internal and external factors behind Reliance ‘s decision for the swap
deal.
2. What environmental changes could make swap deal unattractive in future?
3. Could there be any strategic reason behind the decision to import and export naphtha?
4. Should Reliance import and export naphtha even if it does not provide any profit
advantage?