Indian Economy MCQ 12 for UPSC PSC SSC

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11. Which of the following bodies was created as a result of post-1991 financial sector reforms?

निम्नलिखित में से कौन-सी संस्था 1991 के बाद के वित्तीय क्षेत्र सुधारों के परिणामस्वरूप बनाई गई थी?
a) TRAI
b) SEBI
c) NITI Aayog
d) NHB

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Answer: b) SEBI
Explanation:

  • The Securities and Exchange Board of India (SEBI) was granted statutory status in 1992 as part of capital market reforms
  • It regulates the stock market, ensuring transparency, protecting investors, and curbing malpractices
  • These steps were crucial after scams like Harshad Mehta (1991–92)

12. Consider the following statements about LPG reforms:

LPG सुधारों के बारे में निम्नलिखित कथनों पर विचार करें:

  1. Liberalization reduced government intervention in pricing and investment.
  2. Privatization led to complete removal of public sector from all industries.
  3. Globalization promoted integration with the world economy.

Which of the above is/are correct?
उपरोक्त में से कौन-सा/से कथन सही है/हैं?

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3

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Answer: c) 1 and 3 only
Explanation:

  • ✅ Statement 1: Correct – Liberalization aimed to reduce the License Raj, easing restrictions
  • ❌ Statement 2: Incorrect – Privatization did not eliminate the public sector; it focused on selective disinvestment and efficiency
  • ✅ Statement 3: Correct – Globalization opened India to FDI, WTO, and global supply chains

13. The disinvestment of PSUs is undertaken by which department?

PSU का विनिवेश किस विभाग द्वारा किया जाता है?
a) Department of Financial Services
b) Department of Revenue
c) Department of Investment and Public Asset Management
d) Department of Public Enterprises

Tap here for Answer
Answer: c) Department of Investment and Public Asset Management
Explanation:

  • DIPAM, under the Ministry of Finance, manages disinvestment and asset monetization
  • It was created in 2016 by restructuring the Department of Disinvestment
  • It sets targets, executes strategic sales, and manages shareholding in PSUs

14. Which of the following sectors was most opened up for FDI after 1991 reforms?

1991 के सुधारों के बाद निम्नलिखित में से किस क्षेत्र को FDI के लिए सबसे अधिक खोला गया था?
a) Agriculture
b) Insurance
c) Mining
d) Services

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Answer: d) Services
Explanation:

  • The services sector (IT, telecom, finance, hospitality) witnessed a huge FDI inflow post-1991
  • Contributed significantly to GDP and employment
  • IT-BPM sector became India’s export powerhouse

15. Consider the following statements regarding the 1991 economic crisis:

1991 की आर्थिक संकट के बारे में निम्नलिखित कथनों पर विचार करें:

  1. India had to mortgage gold to borrow foreign currency.
  2. Forex reserves were sufficient for six months of imports.
  3. High fiscal deficit was one of the causes of the crisis.

Which statements are correct?
कौन-से कथन सही हैं?

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3

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Answer: c) 1 and 3 only
Explanation:

  • ✅ Statement 1: India pledged 67 tonnes of gold to secure loans from the IMF
  • ❌ Statement 2: Forex reserves were critically low – barely enough for 2–3 weeks, not six months
  • ✅ Statement 3: High fiscal deficit (~8.5%) was a key structural weakness

16. What does ‘disinvestment’ mean in the context of economic reforms?

आर्थिक सुधारों के संदर्भ में ‘विनिवेश’ का क्या अर्थ है?
a) Selling shares of PSUs to reduce government ownership
b) Reducing imports from foreign countries
c) Investing in foreign bonds
d) Government increasing public sector employment

Tap here for Answer
Answer: a) Selling shares of PSUs to reduce government ownership
Explanation:

  • Disinvestment refers to partial or full sale of government shares in public sector undertakings (PSUs)
  • Aims to:
    • Increase efficiency
    • Reduce fiscal burden
    • Encourage private sector participation

17. Which of the following sectors was delicensed under the New Industrial Policy of 1991?

1991 की नई औद्योगिक नीति के तहत निम्नलिखित में से किस क्षेत्र को डी-लाइसेंस किया गया था?
a) Atomic energy
b) Defense production
c) Textiles
d) Railways

Tap here for Answer
Answer: c) Textiles
Explanation:

  • The New Industrial Policy (NIP) 1991 abolished licensing for most non-strategic industries
  • Sectors like textiles, food processing, electronics were delicensed
  • Strategic sectors like defense, atomic energy remained regulated

18. What was the role of the World Bank in post-1991 reforms?

1991 के बाद के सुधारों में विश्व बैंक की क्या भूमिका थी?
a) Provided debt relief to Indian farmers
b) Extended structural adjustment loans for reforms
c) Took over Indian banking regulation
d) Gave grant for rural employment

Tap here for Answer
Answer: b) Extended structural adjustment loans for reforms
Explanation:

  • The World Bank, along with IMF, provided structural adjustment loans
  • These came with conditions:
    • Reduce fiscal deficit
    • Liberalize trade
    • Reform public sector
  • Helped stabilize the macroeconomic environment post-crisis

19. Which committee is associated with banking sector reforms post-1991?

1991 के बाद बैंकिंग क्षेत्र सुधारों से कौन-सी समिति संबंधित है?
a) Malhotra Committee
b) Rangarajan Committee
c) Narasimham Committee
d) Abid Hussain Committee

Tap here for Answer
Answer: c) Narasimham Committee
Explanation:

  • Narasimham Committee I (1991) & II (1998) were instrumental in:
    • Deregulating interest rates
    • Strengthening prudential norms
    • Promoting NPAs recognition and bank autonomy
  • Set the foundation for modern Indian banking reforms

20. Statement: “Privatization in India was introduced with the objective of enhancing efficiency and competitiveness.”

वाक्य: “भारत में निजीकरण को दक्षता और प्रतिस्पर्धात्मकता बढ़ाने के उद्देश्य से शुरू किया गया था।”

This statement is:
यह कथन है:
a) True / सत्य
b) False / असत्य
c) Partly True / आंशिक सत्य
d) Irrelevant / अप्रासंगिक

Tap here for Answer
Answer: a) True / सत्य
Explanation:

  • Privatization aimed at:
    • Improving operational efficiency of enterprises
    • Reducing bureaucratic delays
    • Enhancing global competitiveness
  • The government retained strategic control but promoted private sector participation

 

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