Important MCQs on Liberalisation, Privatisation and Globalistaion Class 12

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Looking for important MCQs (Multiple Choice Questions) on Liberalisation privatisation and globalisation chapter of Indian Economic Development Class 12 CBSE, ISC and other state Board.

We have made a good collection of very important MCQs of Chapter 2 of the Indian economic development book of class 12

Multiple Choice Questions (MCQs) of Chapter 3 of Indian Economic Development Book of Class 12

Lets practice.

The most urgent problem which prompted the introduction of New Economic Policy in 1991 was:

a) Bad performance of public sector units
b) Foreign exchange crises
c) High tax rates leading to tax evasion
d) All the above

Ans – b)

Industrial Policy before 1991 was essentially a:

a) Pro-Private sector policy
b) Anti-public sector policy
c) Pro-public sector policy
d) Anti-private sector policy

Ans – c)

The most important change in Foreign Trade Policy from 1991 onwards was:

a) Reducing restrictions on imports
b) Reducing restrictions on exports
c) Both a) and b)
d) Reducing restrictions on specific goods only

Ans – c)

Inward foreign direct investment is useful because:

a) Brings in foreign exchange
b) Brings in modern technology
c) Brings in management expertise
d) All the above

Ans – d)

Fiscal deficit is that part of total government expenditure which is met by:

a) Imposing more taxes
b) Selling shares held by government
c) Borrowings
d) All the above

Ans – c)

Fiscal policy of the government refers to:

a) Taxation policy
b) Government expenditure policy
c) Both a) and b)
d) Neither a) nor b)

Ans – c)

Financial sector reforms are undertaken by:

a) Government of India
b) Reserve Bank of India
c) Both a) and b)
d) Neither a) nor b)

b)

The main source of foreign capital In India is:

a) Loans from abroad
b) Foreign direct investment
c) Both a) and b)
d) Neither a) nor b)

Ans – b)

Which of the following refers to relaxation of previous government restrictions?

a) Privatisation
b) Globalisation
c) Disinvestment
d) Liberalisation

Ans – d)

WTO was established in the year___________

a) 1995
b) 1948
c) 1996
d) 1994

Ans – a)

_______________means integrating the domestic economy with the world economy.

a) Globalisation
b) Privatisation
c) Liberalisation
d) Disinvestment

Ans – a)

Trade between two countries is knows as:

a) Bilateral trade
b) Multi lateral trade
c) Both a) and b)

Ans – a)

Which of the following is a policy initiated under New Economic Policy?

a) Liberalisation
b) Privatisation
c) Gloablisation
d) Licensing

Ans – a), b), c)

When was the New Economic Policy announced?

a) June, 1991
b) May, 1991
c) July, 1991
d) January, 1991

Ans – c)

_________refers to disposal of equity of public sector units in the market.

a) Globalisation
b) Privatisation
c) Disinvestment
d) Liberalisation

Ans – c)

Cheaper imported goods was one of the reasons behind:

a) Growing unemployment
b) unbalanced growth
c) Low level of industrial growth
d) Speard of consumerism

Ans – c)

refers to the transfer of assets or serves function from public to private ownership.

a) Gloablisation
b) Privatisation
c) Disinvestment
d) Liberalisation

Ans – b)

WTO stands for:

a) World Trade Organisation
b) World Transport Organisation
c) World Trariff Organisation
d) Women Teachers Organisation

Ans – a)

Outsourcing is goods for India because:

a) It provides employment to large number of unemployed
b) It provides excellence in a particular field
c) Both a) and B)
d) Neither a) nor b)

Ans – c)

Which of the following economic reforms were initiated by the govenment under liberalisation?

a) Industrial sector reforms
b) Agricultural reforms
c) Financial sector reforms
d) All of these

Ans – a), c)

Which of the following industries are reserved for the public sector?

a) Defence aircraft and warships
b) Atomic energy generation
c) Cement
d) Both a) and b)

Ans – d)

_________refers to transfer of ownership, management and control of public sector
enterprises to the entrepreneurs in the private sector.

a) Liberalisation
b) Globalisation
c) Privatisation
d) None of these

Ans – c)

It refers to contracting out some of its activites to a third party which were earlier
performed by the organisation.

a) Outsourcing
b) Globalisation
c) Privatisation
d) Liberalisation

Ans – a)

________involves deregulation and reduction of government controls and greater autonomy of
private investment, to make economy more competitive.

a) Globalisation
b) Privatisation
c) Liberalisation
d) None of these

Ans – c)

Which of the following is not a tax reform?

a) Reduction in taxes
b) Reforms in Indirect taxes
c) Removal of Export Duties
d) Devaluation of Rupee

Ans – c), d)

Which of the following is not a benefit of demonatisation in India?

a) Control over corruption
b) Counterfeiting use of high denomination notes for illegal activities
c) Control on black money
d) More Demanding Customers

Ans – d)

Which of the following was not a feature of Demonatisation?

a) Channelizing savings into formal financial system
b) Tax Administration
c) Cash less economy
d) Promotion of Balck Money

Ans – d)

All Indirect Taxes have been subsumed under:

a) Income Tax
b) Corporate Tax
c) Goods and Services Tax (GST)
d) Value Added Tax (VAT)

Ans – c)

Which of the following reason led to the introduction of New Economic Policy in 1991?

a) Poor Performance of Public Sector
b) Consistent rise in general price level
c) Foreign exchange crisis
d) All of these

Ans – d)

After agreeing to the conditions of ____ India announced the New Economic
Policy (NEP).

a) International Monetary Fund (IMF)
b) International Bank of Reconstruction and Devleopment (IBRD)
c) Reserve Bank of India
d) Both a) and b)

Ans – d)

and ____ currency notes of the old Mahatma Gandhi series were banned as legal tender
money on 8th November 2016. (Choose the correct alternative)

a) ₹ 50 and ₹ 100
b) ₹ 500 and ₹ 1000
c) ₹ 500 and ₹ 2000
d) ₹ 500 and ₹ 200

Ans – b)

__ was the predecessor organisation to World Trade Organisation (WTO).

a) International Bank for Reconstruction and Development (IBRD)
b) International Monetary Fund (IMF)
c) Reserve Bank of India (RBI)
d) General Agreement on Tariffs and Trade (GATT)

Ans – d)

___ was the Indian Finance Minister in 1991, acknowledged for his capabilities
to steer away from the economic crisis looming large on the erstwhile Indian Economy.

a) Dr. Subramanian Swamy
b) Dr. Manmohan Singh
c) Pranab Mukharjee
d) Dr. Urjit Patel

Ans – b)

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Anurag Pathak is an academic teacher. He has been teaching Accountancy and Economics for CBSE students for the last 18 years. In his guidance, thousands of students have secured good marks in their board exams and legacy is still going on. You can subscribe his youtube channel and can download the Android & ios app for free lectures.
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