1.

Which one of the following is not a factor which led the government in 1991 to introduce a new set of
policy mnedsure
-liberalisation, privatisation and globalisation? (Choose the correct alternative)
(a) Decrease in foreign exchange reserves
(b) Rising prices of essential goods
(c) Stagnation of agricultural output
(d) Government's inability to repay its external debt
2. The origin of the financial crisis in India in the 1980s can be traced from the
(Choose the correct alternative)
(a) challenges like unemployment, poverty and population explosion.
(b) insufficient revenue generation from internal sources such as taxation.
(c) sharp rise in the prices of essential goods.
(d) inefficient management of the Indian economy.
3 In the late 1980s, government expenditure began to exceed its revenue by such large margins that meeting the expenditure
through became unsustainable. (Fill up the blank with correct answer)
4. India approached the and and received as loan to manage the crisis. For availing
the loan, these international agencies expected India to liberalise and open up the economy by removing restrictions on
the private sector, reduce the role of the government in many areas and remove trade restrictions between India and
other countries. (Fill up the blanks with correct answers
5. India agreed to the conditionalities of World Bank and IMF and announced the which consisted of
wide ranging economic reforms. (Fill up the blank with correct answer)
6. The thrust of the New Economic Policy (NEP) was (Choose the correct alternative)
(a) to create a more competitive environment in the economy and removing the barriers to entry and growth of firms.
(b) to maintain sufficient foreign exchange reserves and keep the rising prices under control.
(c) to improve the efficiency of the economy and increasing its internal competitiveness by removing the rigidities in
various segments of the Indian economy.
(d) to meet the challenges like unemployment, poverty and population explosion.
7. (Stabilisation measures/Structural reform measures)are short term measures, intended to correct the
balance of payments position and to bring inflation under control. (Fill up the blank with correct option)
8. The reform policies introduced in and after 1991, abolished industrial licensing for almost all except product categories
(Complete the sentence)
9. The only industries which are now reserved for the public sector are a part of_ (Complete the sentence)
10. The financial sector includes financial institutions, such as commercial banks, investment banks, stock exchange operations
and The financial sector in India is regulated by . (Fill up the blanks with correct answers)
11. Match the columns:

Column I (Liberalisation measures) Column II (Areas of Liberalisation measures)

(a) Many goods produced by small scale (i)Tax reforms industries have now been deserved
investment limit in banks raised to around 50%. (ii) Foreign exchange reforms
(D) Foreign was

(c) The rate of corporation tax, which was very high earlier, has (ii) Financial sector reforms
been gradually reduced.
(d) Now, markets determine exchange rates based on the demand (iv)Deregulation of industrial sector
and supply of foreign exchange.
di.
 the role of RBI from, to
sector reforms is to reduce of financial
12. One of the major aims of financial (Fill up the blanks with correct
sector. (facilitator/regulator) options
from India and abroaa, certain managerial asperh.
to generate resources ts
have
13. Though banks have been given permission
been retained with the RBI to . (Complete the sentence)
are noW allowed to invest in Indian
14. such as merchant bankers, mutual funds and pension funds, an financial
(Fill up the blank with correct
markets. answer
unified indirect tax system in India.
to simplify and introduce a
15. Recently, the Parliament passed a law,. (Fill up the blank with correct
answer)
16. Goods and Services Tax Act, 2016, which came into effect from July 2017, is expected to: (Choose the correct altern
(b) reduce tax evasion.
(agenerate additional revenue for the government.
market'. (d) All of the above.
(c) create 'one nation, one tax and one
17. Since 1991, there has been a continuous reduction
in income tax rates because: (Choose the correct alternative)
for tax evasion.
were an important reason
(a)it is felt that high rates ofincome tax and voluntary disclosure of income
rates of income tax encourage savings e.
(b) it is widely accepted that moderate
(c) Both (a) and (b)
are very high.
(d) proceeds of corporation tax and indirect taxes
18. In 1991, an immediate m e a s u r e to resolve
the balance of payments crisis was: (Choose the correct alternative)
in the foreign exchange market from government control.
(a) to free the determination of rupee value
(b) devaluation of rupee against foreign
currencies.

(c) removing the trade barriers-quotas and tariffs.

(d) simplification of export and import procedures.
19. Liberalisation of trade and investment regime was initiated to: (Choose the correct alternative)
(a) increase international compettiveness of industrial production and also foreign investments and tedhnologyintothe
economy.
(b) promote the efficiency of local industries.
(c) adopt the modern technologies.
(d) All of the above
20 have been removed to increase the competitive position of Indian goods in the international markets.
(Choose the correct alternative)
(a)Importlicensing (b) Quantitative restrictions
(c) Export duties (d) Tariffs
21. Import licensing was abolished accept in case of . (Complete the sentence)
22. The trade policy reforms aimed at: (Choose the correct alternative)
(a) dismantling of quantitative restrictions on imports and exports
(b) reduction of tariff rates
(c) removal of licensing procedures for imports.
(d) All of the above
23 implies shedding of the ownership or management of a government owned enterprise.
(Fill up the blank with correct answer
24. Privatisation of the public sector enterprises (PSEs) by selling off part of the equity of PSEs to the public known as

Fill up the blank with correct answer)

25. According to the government, the purpose of disinvestment was mainly to increase the resources only.
True/False? Give reason.

26. The government has made attempts to improve the efficiency of PSUs gerial

decisions. For instance, some PSUs have been by giving them autonomy in taking nrel
granted special status as_ (Complete the sentence
27. Match the columns:

Column
Column
(i) Indian Oil Corporation Limited
(A) Maharatna
(i) Airport Authority of India
(B) Navratna
(ii) Mahanagar Telephone Nigam Limited (C) Miniratna
 columns:
Match the
28.
Column
ColumnII
(al Turning the worid into
one whole or creating a borderless world. (A) Privatisation
Gil Outright sale of public sector companies.
(B) Liberalisation
ül Putting an end to those restrictions, rule and laws which were aimed at regulating the (C) Globalisation

economic activities but became major hindrances in growth and development.

involves creation of networks and activities
29 transcending economic, social and geographical boundaries
(Liberalisation/Globalisation)
(Fill up the blank with correct option)
is an outcome of the set of various
30 policies that are aimed at transforming the world towards greater
interdependence and integration.
(Choose the correct alternative)
(a) Liberalisation
(b) Privatisation
(c) Globalisation
(d) Outsourcing
and in India have made it a destination for global outsourcing in the post-reform period.
31
(Fill up the blanks with correct answers)
37 As a form of economic activity, outsourcing has intensified, in recent times, because (Complete the sentence)
3. Which of the following services are being outsourced by companies in developed countries to lindia?
(Choose the correct alternative)
(a) Voice-based business process (BPO or call centres)
(b) Record keeping and accountancy
(c) Teaching
(d) All of the above

(World Trade Organisation/international Monetary Fund)was founded in 1995 as the successor organisation
34
to the General Agreement on Trade and Tariff (GATT), which was established in 1948 with 23 countries as the global trade
organisation to administer all trade agreement (bilateral/multilateral) by providing equal opportunities to all
countries in the international market for trading purposes. (Fill up the blanks with correct options)
35. Which of the following is not a purpose of WTO?
(a) To establish a rule based trading regime in which nations cannot place arbitrary restrictions on trades.
(b) To enlarge production and trade of services.
(c) To ensure optimum utilisationof world resources and to protect the environment.
(d) None of the above
of tariff
36. and
The WTO agreements
non-tariff.
cover trade in services to facilitate international multilateral trades only through removal
True/Faise? Give reason.
37. As an important member of WTO, India has been in the forefront of framing fair global rules, regulations and safeguards
and advocating the interests of the developing world. True/False? Give reason.
38. Some scholars question the usefulness of India being a member of the WTO because (Choose the correct alternative)
(a) a major volume of international trade occurs among the developed nations.
D) they are forced to open their markets for developed countries but are not allowed access to the markets of developed

countries.
(c) both (a) and (b)
of trade.
its commitments towards liberalisation
0 India has not kept True/False? Give reason.
During the reform period the growth of agriculture has declined.
0. During the reform period, employment generation increasea.
True/False? Give reason.

41 for the decelerating growth rate of agriculture during the reform period?
wnich of the following is the reason
(Choose the rect alternative)
infrastructure has fallen in the reform period.
Public investment in agriculture sector especiallyin the cost of production.
increase
Kemoval offertiliser subsidy has led to in import duties on agricultural products,
etc. Indian farmers
D u e toa number of policy changes such as reduction
competition.
OW have to face increased international
(d) All of the above
 True/False? Give reason.
sector has gone up.
of the service
the reform period the growth investment and foreign exchange rec
reserves.
42. During increase in foreign
direct

43. The opening of the economy has

led to a rapid True/False? Give reason.
up the blank with correct
(Fill answerl
in the reform period.
44. India is seen as a successful export of. some of the basic problems facing Our e
economy
able to address
criticised for not being (Fill up the blank with correct answe
45. The reform process has
been widely
especially in the areas of . there has beena shiftfrom nra
oriented
in agriculture,
policy strategies duction
because ofexport in lieu of production of.
46. During the reform period, focusing on.
towards production for the. domestic market, export market. coch
crops)
. .

forthe. words: food grains,

the following
(Fill in the blanks using (Choose the correct alternative)
of:
47. Globalisation is the outcome (b) Liberalisation

(a) Privatisation (d) Outsourcing

(c) Both (a) and (b) on reducing its role and on
the performance
of the public sector,
there was a consensus
ing it
With a view to improving
measures.
48.
done through
.and
sector. This w a s
.

(Fill up the blanks with correct answers)

up to the private
because of decreasing demand of industrial nrod
oducts
recorded a slow down during reform-period (Fill up the blanks with correct answers)
49. Industrial growth has etc.
due to various reasons such as
to developed
countries' markets because of
the
like India do not have
access

50. Developing Countries (Complete the sentence)

True/False? Give reason.
to improve their efficiency.
51. Disinvestmentof PSUs/PSEs is the best way True/False? Give reason.
expenditures.
developmental and welfare
and tariff reductions had a negative impact on
52. Tax (Choose the correct alternative)
describes as a positive impact
of globalisation for India?
53. Which is of the following
global markets
(a) Greater access to
(b) High technology players in the international arena.
industries of India to become important
(c) Increased possibility of large
(d) All of the above True/False? Give reason.
Globalisation has widened the
economic disparities among nations and people.
54.
in select areas in the services sector such as
the growth has been concentrated only some
55. During reform period, which provide livelihoods to millions of people in the
rather than vital sectors such as (ii)_
(i) (Fill up the blanks with correct answers)
country. rise in exports
problems of declining foreign exchanges, growing imports without matching
56. The economy was facing and pressure from international
economic policies in 1991 due to a (i)_
and high inflation. India changed its answers)
organisations like (ii)_
(Fill up the blanks with correct
tackle the
was undertaken by the Government of
India on November 8, 2016 to
57. demonetisation of
The latest currency (Complete the sentence)
problem of_
58. After the demonetisation of currency undertaken by the Government of India on November 8, 2016, old currency noteso
(True/False)
500 and T2,000 were no longer legal tender.

59. After the demonetisation of currency undertaken by the Government of India

on November 8, 2016, new currency note
(True/False)
in the denomination of R500 and2,000 were launched.
60. After the demonetisation of currency undertaken by the Government of india on November 8, 2016, the public
(True/False)
advised to deposit old currency notes in their bank account till 31 March 2017 with declaration.
void
November 8, 2016.
61. The latest demonetisation of currency was undertaken by the Government of India on
currency
old currency by
new
complete breakdown and cash crunch, government had allowed exchange of
per person per day.
(a) F2,000 (b) T4,000
(c) 10,000 (d) T20,000 notes of
62. After the demonetisation ofcurrency undertaken by the Government of India on November 8, 2016, old currencyaga
as lega.
500 and 71,000 were no longer legal tender. However, till 12 December 2016 old currency notes were acceptau
tender at/for
63. The Parliament passed a law, , to simplify and introduce a unified indirect tax system in Indla. SWer

answe
blank with correct
(Fil up the Sjince 199
 6 Goods and Services Tax Act, came into effect from
in India and was to be implemented by the Centre, 28
states and 7 Union Territories
(Fill up the blank with correct answer)
65. cST is applicable throughout the country with one rate for all types of (True/False)
is a destination based
goods/services.
66. consumption tax with facility of. in the supply chain. The tax is discharged
at every stage of suppiy and the credit of tax
goods and/or services.
paid at the previous stage is available for set off at the next stage of suppiy of
(Fill up the blank with correct answer)
67 has amalgamated a large number of Central and State taxes and cesses, and has replaced large number oT es
on goods or provision of service.
(FIll up the blank with correct answer)
GST is effectively a tax on
68. at each stage of supply of
goods and/or services.
(Fill up the blank with correct answer)
69. Name any two major taxes/cesses that were levied by the Central Government, which now have been subsumed in G5.

70. Name any two State taxes/cesses that have been subsumed in GST.
71, Under GST, there are 5 standard rates applied, i.e.
on supply of all goods and/or services across the
country. (Fill up the blank with correct answer)
72. State Governments will continue to levy VAT on
for human consumption. will attract both GST
and Central Excise Duty.
(Fill up the blank with correct answer)
73, GST will result into higher economic growth as GDP is expected to rise by about

(Choose the correct alternative)

(a) 0.5%
1%(b)
(c) 2%
(d) 3%
74. India has adopted a policy of economic development since 1991. (liberal/strict)
(Fill up the blank with correct option)
75. The new model of economic reform is known as liberalisation, privatisation and
(Fill up the blank with correct answer)
76. Due to globalisation ,agricultural export -(increased/decreased/constant/zero)
(Fill up the blank with correct option)
77. In which year new economic policy was initiated in India? (Choose the correct alternative)
(a) 1999 (b) 1991
(c) 2000 (d) 2001
78. The most urgent problem which prompted the introduction of new economic policy in 1991 was
(Choose the correct alternative)
(a) poor performance of public sector
(b) high tax rate leading to tax evasion
(c) foreign exchange crisis
(d) lower private sector investment
79 NEP stands for: (Choose the correct alternative)
(a) New Economic Policy (b) New Export Policy
(c) New Economic Progress (d) Nation Export Policy
80. Privatisation promotes: (Choose the correct alternative)
(a) socialist pattern (b) Increased efficiency
(c) Producer's sovereignty (d) Laissez faire system
8. Which international organisation replaced General Agreement on Trade and Tariff (GATT):
(Choose the correct alternative)

a)International Monetary Fund

(b) United Nations Organisation
c) World Trade Organisation
(d) World Health Organisation