“LPG 1991” LESSON-3
INDIAN ECONOMIC DEVELOPMENT CLASS-12
LPG 1991
Q1. LPG policy/ New Economic Policy was introduced in India in which
year?
A. 1990
B. 1991
C. 1992
D. 1993
Ans. B
Explanation:- LPG policy/ New Economic Policy was introduced in the
year 1991. Hence, B is the correct option.
Q2. India approached – to manage economic crisis in 1991
A. World Bank
B. IMF
C. UNO
D. A & B BOTH
Ans. D
Explanation:- India approached IMF & World bank to manage 1991
economic crisis . Hence, D is the correct option.
Q3. Which policy was introduced to remove barriers to entry & growth
of firms in order to create competitive environment?
A. New Industrial Policy
B. New Economic Policy
C. New Education Policy
D. Tariffs & Trade Policy
Ans:-B
Explanation:- New Economic Policy was introduced in 1991 remove
barriers to entry & growth of firms in order to create competitive
environment .Hence ,B is correct option
Q4. – measures are short term intended to correct weakness
developed in BOP & bring inflation under control
A. Structural
B. Stabilisation
C. A & B both
D. Autonomous
Ans. B
Explanation:- Stabilisation measures are short term intended to correct
weakness developed in BOP & bring inflation under control. Hence, B is
the correct option
Q5. – reforms are long term aim at improving efficiency of economy and
increasing international competition by removing sectoral rigidities.
A. Structural
B. Stabilisation
C. Accommodating
D. Autonomous
Ans. A
Explanation: Structural reforms are long term aim at improving efficiency
of economy and increasing international competition by removing sectoral
rigidities. Hence , A is the correct option
Q6. – was introduced to end restrictions & open various sectors of
economy
A. Globalisation
B. Privatisation
C. Liberalisation
D. Industrial policy resolution
Ans:- C
Explanation: was introduced to end restrictions & open various sectors
of economy.Hence, C is the correct option.
Q7. Which industries are now reserved for public sector?
A. Defence, Transport, Textile
B. Atomic energy, Food processing, Iron & steel
C. Railways, Defence, Atomic Energy
D. IT, Aviation,Mineral
Ans. C
Explanation:- Railways, Defence, Atomic energy are the only industries
which are reserved for public sector now. Hence, C is the correct option
Q8. Which institution regulates monetary system in India ?
A. NABARD
B. Government Of India
C. SEBI
D. RBI
Ans. D
Explanation:- RBI regulates monetary system in India .Hence, D is the
correct option.
Q9. Which sector reforms reduced the role of RBI from regulator to
facilitator?
A. Financial Sector
B. Industrial Sector
C. Agricultural Sector
D. None
Ans. A
Explanation:- Financial sector reforms reduced the role of RBI from regulator
to facilitator now financial sector is allowed to take decisions on any matter
without consulting to RBI. Hence, A is the correct option.
Q10. Tax reforms are concerned with government’s –
A. Fiscal policy
B. Revenue policy
C. Monetary policy
D. B & C both
Ans. A
Explanation:- Tax reforms are concerned with the fiscal policy of govt.
meaning the taxation & expenditure policies. Hence, A is the correct
option.
LPG 1991 LPG 1991
Q11. Which Tax was introduced in india to unify indirect taxes?
A. VAT
B. GST
C. Service sector
D. A & B both
Ans. B
Explanation:- GST came into effect from July 2017, unified all other
indirect taxes this is expected to create revenue for the govt.Hence,B is
the correct option
Q12. Quantative restrictions were put to:
A. Encourage exports
B. Discourage Imports
C. Promote Imports
D. None
Ans.B
Explanation:-Quantitative restrictions were put to discourage imports this
was done by keeping tarrifs very high. Hence, B is the correct option.
Q13. Import licensing was removed except for A. Hazardous & Environment sensitive industries
B. Textile industry
C. IT industry
D. Iron & steel industry
Ans. A
Explanation:- Import licensing was removed for all industries except for
hazardous & environment sensitive industries . Hence, A is the correct
option
Q14. – is selling off part of equity of PSE to private sector
A. Investment
B. Equity sale
C. Transfer of shares
D. Disinvestment
Ans. D
Explanation:- Disinvestment is selling off part of equity of public sector
enterprises to private sector .Hence, D is the correct option
Q15. What status were granted to public sector enterprises to improve their
efficiency?
A. Maharatnas
B. Miniratnas
C. Navratnas
D. All of the above
Ans. D
Explanation:- Govt declared PSE’s as Maharatnas, Miniratnas & Navratnas to
improve efficiency & enable them to compete . Hence, D is the correct
option.
Q16. Shedding of ownership or management of a govt owned enterprise is –
A. Privatisation
B. Globalisation
C. Liberalisation
D. None
Ans. A
Explanation:- Privatisation is the shedding of ownership of a govt owned
enterprise , converting govt. companies into private companies. Hence, A is
the correct option
Q17. Name the parent organization of WTO
A. General Agreement on Trade & Tarrif
B. General Agreement on Transport & Commerce
C. General Agreement on Trade & Commerce
D. None
Ans. A
Explanation:- The parent organization of WTO is General Agreement On
Trade & Tarrif (GATT established in 1948) to adminsiter multilateral trade
agreements later renamed in 1995 as WTO. Hence, A is the correct
option.
Q18. The NEP can be classifed into
A. Stabilisation measures
B. Structural measures
C. Standardised measures
D. Both A & B
Ans. D
Explanation:- The New Economic Policy is categorised into stabilisation
measures & structural measures introduced in 1991. Hence, D is the
correct option.
Q19. In – sale minimum 51% of stake of PSE is sold to private sector
A. Strategic
B. Minority
C. Standard
D. None
Ans. A
Explanation:- Strategic sale involves sale of minimum 51 % of PSE stake
to private sector, minority sale involves sale of less than 49% of PSE
stake to private sector . Hence, A is the correct option.
Q20. Which of these reforms are included in the policy of
liberalization?
A. Industrial sector reforms
B. Financial sector reforms
C. Tax reforms
D. All of the above
Ans. D
Explanation:- Liberalisation include all of the above policy measures .
Hence, D is the correct option
Q21. In forex reforms rupee was devalued to –
A. Increase in export prices
B. Increase in import prices
C. Decrease in export prices
D. Both B & C
Ans. D
Explanation:- Devaluation means decreasing value of domestic
currency which increases import prices leading to fall in imports & rise
in exports.Hence, D is the correct option
Q22. Which of the following is a Navratna company?
A. SAIL
B. MTNL
C. BSNL
D. None
Ans. B
Explanation:- Mahanagar Telephone Nigam Ltd is a navratna company
.Hence, B is the correct option
Q23. Which of the following is outcome of globalization
A. Insourcing
B. License free imports
C. Outsourcing
D. None
Ans. C
Explanation:- Outsourcing in which a company hires regular service
from external sources is the outcome of globalisation.Hence , C is the
correct option
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LPG 1991
Hope it helps, all the best