CHAPTER – 3

1. LQP stands for:

a. License, Quota and Permit

b. Liberalization, Quality Improvement and Production

c. License, Quality and Production

d. Liberalization, Quota and Permit

2. How many industries were reserved for public sector at the time of reforms?

a. 4

b. 17

c. 10

d. 8

3. Which of the following statement is true?

a. Privatisation and disinvestment is one and the same thing.

b. Every privatisation is disinvestment.

c. Every divestment is privatisation.

d. Disinvestment is broader than privatisation.

4. ___________ sector has got maximum boost from new economic policy 1991.

a. Primary Sector

b. Secondary Sector

c. Tertiary Sector

d. All of the above

5. __________ sector remained stagnant during reform period.

a. Primary Sector

b. Secondary Sector

c. Tertiary Sector

d. All of the above

6. What was the immediate crisis India faced in the begging of the 1990s?
 a. Inflation

b. Debt trap

c. Foreign exchange crisis

d. All of the above

7. TRIPS stands for:

a. Tariff and Revenue for Indian Policies for Stabilization

b. Trade Related Intellectual Property Rights

c. Tariff and Revenue for Indian Policy Strategy

d. Trade Related Indian Property Rights

8. How many industries still need license for its operations?

a. 4

b. 6

c. 8

d. 10

9. At present India is the _____ largest foreign exchange holder in the world.

a. Fifth

b. Sixth

c. Seventh

d. Eighth

10. The new economic policy can be broadly classified as

a. Stabilisation measures

b. Structural reforms measures

c. Standardized measures

d. Both a and b

11. India experience BoP crisis during 1950 – 1990 due to which of the following
reasons?

a. High imports

b. Low exports
 c. Focus on agriculture

d. Both a and b

12. Tax reforms was one of the important reforms under liberalization policy. Which of
the following are not a tax reforms?

a. Reduction in the rate of tax

b. Reforms in indirect taxes

c. Simplified tax payment process

d. Devaluation of rupee

13. Under foreign exchange reforms India rupee was devalued with the objective of

a. Increase price of exports

b. Increase price of imports

c. Decrease price of exports

d. Both b and c

14. In financial sector reforms, foreign investment limit in banking institution was
raised to

a. 24%

b. 51%

c. 74%

d. 80%

15. Which of the following is not an element of fiscal reforms?

a. Taxation reforms

b. Public expenditure reforms

c. Change in interest rate

d. Control on public debt

16. Which of the following is not a consequence of the policy of privatization?

a. Contraction of public sector

b. Disinvestment in public sector enterprises

c. Sale of public sector’s shares

 d. Purchase of industrial shares by the government

17. External sector reforms under NEP included:

a. Foreign exchange reforms

b. Foreign trade policy reforms

c. Both a and b

d. None of these

18. The WTO was founded as the successor organization to:

a. International Monetary Fund (IMF)

b. National Bank for Agriculture and Rural development (NABARD)

c. General Agreement on Tariffs and Trade (GATT)

d. International Bank for Reconstruction and Development (IBRD)

19. Which act has been enacted in place of MRTP Act?

a. Competition Act

b. Monopoly Act

c. Licensing Act

d. Foreign Exchange Act

20. Laissez – faire policy is that policy in which:

a. There is 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

21. Sale of equity of public sector enterprises by the government leads to:

a. Liberalization

b. Privatization

c. Globalization

d. Disinvestment

22. Following the New Economic Policy, wwhich sector mainly drives the growth of
Indain economy?
 a. Agriculture

b. Service

c. Industry

d. Construction

23. How much loan was provided by World Bank and IMF during the nineties to bail
India out of the crisis?

a. $10 Million

b. $ 10 Billion

c. $ 7 Billion

d. $ 20 Billion

24. Where is the headquarters of WTO located?

a. Geneva

b. Italy

c. New York

d. Washington

25. India has become an important destination for global ________ since reforms.

a. Trade

b. Import

c. Outsourcing

d. Both a and b