Trivia Quiz On Indian Economy And Economic Reforms In India

20 Questions | Total Attempts: 581

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Trivia Quiz On Indian Economy And Economic Reforms In India

Below is a trivia quiz on the Indian economy and economic reforms in India, these reforms were first introduced in the year 1991, and they aimed at opening India up for foreign investment and trade. Take up the interesting quiz and see if you understand the reforms and their impact on the economy of the nation as a whole. All the best!


Questions and Answers
  • 1. 
    Which of the following statements is correct?    
    • A. 

      The public sector was given a dominant position in the newly Independent India.

    • B. 

      The foreign trade policy post independence allowed free trade of all goods and service.

    • C. 

      Monetary policy post Independence sought to keep the CRR at a very low level.

    • D. 

      None of the above.

  • 2. 
    • A. 

      National debt was nearly 60 per cent of the GNP of India.

    • B. 

      Inflation crossed double digits.

    • C. 

      Foreign reserves were maintained at a very high level.

    • D. 

      None of the above.

  • 3. 
    Which of the following statement is correct about the New Industrial Policy, 1991?   
    • A. 

      It made it compulsory for the industry to obtain license for all projects.

    • B. 

      It abolished licensing for all projects except IS industries of strategic and security importance.

    • C. 

      It gave dominant position to the public sector.

    • D. 

      None of the above.

  • 4. 
    At present only_____________________ industries are reserved for the public sector.
    • A. 

      5

    • B. 

      7

    • C. 

      8

    • D. 

      3

  • 5. 
    At present there are only______________ industries for which licensing is compulsory.
    • A. 

      18

    • B. 

      6

    • C. 

      10

    • D. 

      9

  • 6. 
    At present, 100 per cent FDI is allowed in ____________.           .
    • A. 

      Defence.

    • B. 

      Drugs and pharmaceuticals.

    • C. 

      Banks.

    • D. 

      Insurance.

  • 7. 
    In private banking________________ per cent FDI is allowed now.
    • A. 

      100

    • B. 

      49

    • C. 

      74

    • D. 

      26

  • 8. 
    • A. 

      Prior approval of central government is required for establishing new undertakings, and expanding the present undertaking.

    • B. 

      An industry intending to have more than 100 crore of assets is required to obtain the permission of the central government.

    • C. 

      Prior approval of central government for establishing new undertakings and expanding existing undertaking is not required

    • D. 

      Two or more companies deciding to amalgamate are required to take the prior approval of the centra] government.

  • 9. 
    • A. 

      The mandatory convertibility clause is applicable for all term loans.

    • B. 

      The mandatory convertibility clause is applicable for term loans of more than 10 years.

    • C. 

      The mandatory convertibility clause is applicable for term loans of less than 10 years.

    • D. 

      The mandatory convertibility clause is no longer applicable.

  • 10. 
    • A. 

      The public sector has been stripped off all its power.

    • B. 

      The public sector has been given the commanding heights of the economy.

    • C. 

      The public sector's portfolio will be reviewed with greater realism. The focus will be on strategic high tech and essential infrastructure industries.

    • D. 

      The public sector's management has been passed over to the private sector.

  • 11. 
    In the pre-reform period, the banking sector:
    • A. 

      Functioned in a highly regulated environment.

    • B. 

      Functioned in a manner detrimental to the general public.

    • C. 

      Concentrated on making huge profits.

    • D. 

      None of the above.

  • 12. 
    Which of the following is correct in relation to banks in the post-reform period?
    • A. 

      Bank rate has been increased to 10 per cent.

    • B. 

      CRR has been increased to 20 per cent.

    • C. 

      Public sector banks have been asked to raise their funds from their private resources only.

    • D. 

      None of the above.

  • 13. 
    • A. 

      The foreign trade policy was very liberal; it allowed import of all types of goods.

    • B. 

      Import of foodgrains was strictly prohibited.

    • C. 

      The balance of payments situation was quite comfortable.

    • D. 

      None of the above.

  • 14. 
    • A. 

      Quantitative restrictions have been imposed on a number of tradable items.

    • B. 

      Quantitative restrictions have been removed on most of the items except a few goods.

    • C. 

      The tariff walls have been further raised.

    • D. 

      Foreign investment is now being discouraged.

  • 15. 
    FERA stands for
    • A. 

      Foreign Export Revaluation Act.

    • B. 

      Funds Exchange Resources Act.

    • C. 

      Finance and Export Regulation Association.

    • D. 

      Foreign Exchange Regulation Act.

  • 16. 
    FEMA stands for
    • A. 

      Foreign Exchange Management Act.

    • B. 

      Funds Exchange Management Act.

    • C. 

      Finance Enhancement Monetary Act.

    • D. 

      Future Exchange Management Act.

  • 17. 
    As a result of the foreign trade reforms:
    • A. 

      The number of import licenses has increased.

    • B. 

      Only a few types of goods and services can now be exchanged freely.

    • C. 

      EPCG scheme has been abolished.

    • D. 

      The average tariff rates have been reduced.

  • 18. 
    All of the following statements except one are correct about the Foreign Trade Policy, 2004-09. Identify the incorrect statement:
    • A. 

      Certain thrust areas like agriculture, handlooms, handicrafts etc. have been identified.

    • B. 

      Vishesh Krishiupaj Yojana has been started.

    • C. 

      'Served from India' scheme has been started.

    • D. 

      The entry of FDI in India has been restricted.

  • 19. 
    DFEC stands for
    • A. 

      Direct Foreign Exchange Control.

    • B. 

      Direct Finance Exchange Control.

    • C. 

      Duty Free Export Credit.

    • D. 

      Duty Free Exchange Credit.

  • 20. 
    EPCG stands for
    • A. 

      Export Promotion Capital Goods.

    • B. 

      Expert Programme for Credit Generation.

    • C. 

      Exchange Programme for Consumer Goods.

    • D. 

      Export Promotion Consumer Goods.