Economics M.C.Q (1 Marks)

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

1. International Bank for Reconstruction and Development (IBRD)
2. International Monetary Fund (IMF)
3. Reserve Bank of India (RBI)
4. General Agreement on Tariffs and Trade (GATT)

When was WTO established?

1. 1991
2. 1981
3. 1995
4. 2000

When was New Economic Policy announced?

1. In July, 1991
2. In June, 1991
3. In July, 1996
4. In June, 1992

Opening up the economy to the economies of the world so that Indian economy can compute at international level is called:

1. Liberalisation.
2. Globalisation.
3. Privatisation.
4. None of the above.

The origin of the financial crisis can be traced from the inefficient management of the Indian economy, which of the following reasons are responsible?

1. Government did not able to generate sufficient revenue.
2. Government expenditure began to exceed its revenue.
3. Government borrowed money for meeting consumption needs.
4. All of the above.

Which of the following is not true about economic crisis of India in 1990?

1. India was highly indebted country, pay ₹ 10,000 crore as interest payment.
2. Foreign exchange reserves showed a marginal rise owing to policies between 1950 to 1990.
3. Inflation rate was very high at 16.8% per annum.
4. BOP was in deficit of ₹ 30,000 crore.

LPG stands for:

1. Liberalisation, Production and Global Cooperation.
2. Liberalisation, Privatisation and Globalisation.
3. License, Privatisation and Globalisation.
4. License, Permit and Goods.

What was the immediate crisis India faced in the beginning of the 1990s?

1. Inflation.
2. Debt trap.
3. Foreign exchange crisis.
4. All of the above.

Predecessor of WTO is:

1. General Agreement on Trade and Tariff.
2. General Announcement on Trade and Tax.
3. General Agreement on Taxes and Trials.
4. None of the above.

Which of the following factors cause government to undertake programmes of public sector reforms?

1. Economic inefficiency in the production activities of the public sector.
2. Rapid and unreasonable expansion of bureaucracy.
3. Lack of accountability and corruption.
4. All the above.

_______ sector has got maximum boost from new economic policy 1991.

1. Primary Sector.
2. Secondary Sector.
3. Tertiary Sector.
4. All of the above.

Industries now reserved for the public sector are:

1. Defence equipment.
2. Atomic energy generation.
3. Railway transport.
4. All of the above.

Which of the following organisations settles the disputes among the member countries?

1. IME
2. World Bank
3. WTO
4. None of the above.

Which of the following statements is true?

1. Privatisation and disinvestment is one and the same thing.
2. Every privatisation is disinvestment.
3. Every disinvestment is privatisation.
4. Disinvestment is broader than privatisation.

Which of the following is not a method of privatisation?

1. Disinvestment.
2. Sale of PSUs to private sector.
3. Contraction of PSUs.
4. Sale of PSUs to government.

How many industries still need license for its operations?

1. 4
2. 6
3. 8
4. 10

__________________ refers to the sale of equity of public sector units in the market.

1. Liberalisation.
2. Globalisation.
3. Disinvestment.
4. Privatisation.

The most common route for investment by MNCs in countries around the world is to:

1. Set-up new factories.
2. Buy existing local companies.
3. Form partnership with local companies.
4. All of the above.

At present India is the _______ largest foreign exchange holder of the world.

1. fifth.
2. sixth.
3. seventh.
4. eighth.

As a part of globalisation process, tariff rates were _____________ in India.

1. Raised.
2. Lowered.
3. Not changed.
4. Abolished.

The process of privatisation is where:

1. A company is transferred to a non-profit organization.
2. Services that were previously supplied are outsourced.
3. A few public sector enterprises are sold to private sector.
4. A state industry merges with or takes over a private or publicly owned company.

What was the one major proposal of new industrial policy (1991)?

1. NRI's will not be allowed for capital investment in India.
2. Facility of FDI upto 51 percent in high priority industries.
3. Import restrictions on technical know how for one year.
4. Abolition of industrial licencing except for six industries.

Which duty has been removed to increase the competitive position of Indian goods in the international markets?

1. Custom duty.
2. Export duty.
3. Import duty.
4. None of the above.

___________ refers to an electronic device that allows an individual to make financial transactions electronically.

1. e-wallets.
2. Plastic cards.
3. Cheques.
4. None of the above.

Which of the following statements is against globalisation?

1. It will improve allocative efficiency of resources.
2. It will redistribute economic power.
3. It will impose tariff barriers among nations.
4. It will provide updated technology.

When was Navratna Policy announced?

1. 1992
2. 1991
3. 1995
4. 1996

Devaluation of a currency means:

1. Fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners
2. Permitting the currency to seek its worth in the international market.
3. Fixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined currencies.
4. Reduction in the value of domestic currency in relation to other currencies in the world

International Bank for Reconstruction and Development (IBRD) is popularly known as:

1. World Bank.
2. Bank of Tokyo.
3. American Express.
4. HSBC Bank.

General Agreement on Trade and Tariff (GATT) was established in 1948 with how many countries as global trade partners?

1. 20
2. 21
3. 22
4. 23

Which of the following is/are objective(s) of GST?

1. To eliminate classification dispute between goods and services.
2. To bring uniformity in tax rates.
3. To ensure availability of input tax credit across the value chain.

Choose from the options below:

1. Both (i) and (ii).
2. Both(i) and (iii).
3. Both (ii) and (iii).
4. All of these.

Which is the latest tax introduced by the government of India? (Choose the correct alternative):

1. Goods and Services tax.
2. Value-added tax.
3. Service tax.
4. Corporation tax.

How many industries are reserved for public sector at present?

1. 4
2. 17
3. 10
4. 3

How many PSUs were given status of mini ratnas?

1. 108
2. 9
3. 97
4. 21

Which of the following is not a navratna company?

1. Bharat Petroleum Corporation Limited.
2. Gas Authority of India Limited.
3. Indian Railways.
4. Steel Authority of India Limited.

India has been a favourite destination of outsourcing because:

1. India has English speaking youth.
2. India has well developed IT sector.
3. Indian government policies are favourable for outsourcing.
4. All of the above.

International body which deals with Multilateral Trade Agreement between nations is:

1. UNO
2. WTO
3. OPEC
4. IBRD

Private Foreign investment has increased with increase in:

1. FDI
2. FII
3. Both (a) and (b).
4. None of these.

The pre-condition of privatisation to be successful requires:

1. Liberalisation and de-regulation of the economy.
2. Capital markets should be sufficiently developed.
3. Both (a) and (b).
4. None of these.

How many countries are members of WTO at present?

1. 190
2. 156
3. 153
4. 180

Name the Finance Minister who took a decision to introduce reforms in India.

1. P. Chiambaram.
2. Narsimha Rao.
3. Dr. Manmohan Singh.
4. Arun Jetli.

IMF stands for:

1. International Monetary Foundation.
2. Internal Monetary Fund.
3. International Monetary Fund.
4. International Money Foundation.

_______ sector remained stagnant during reform period.

1. Primary Sector.
2. Secondary Sector.
3. Tertiary Sector.
4. All of the above.

Which of the following is/ are not true for financial sector reforms?

1. The role of RBI changed to regulator.
2. Private sector banks were allowed to work.
3. Bank were allowed to expand their branches without prior approval.
4. All of the above are true.

Public sector not performed as much as it was expected under economic reforms due to:

1. Lack of competition.
2. Huge losses of PSU.
3. Managerial inefficiency.
4. All of the above.

Financial sector reforms mainly relate to:

1. Banking sector.
2. Insurance sector.
3. Both (a) and (b).
4. Stock market.

TRIPS stands for:

1. Tariff and Revenue for Indian Policies for Stabilisation.
2. Trade Related Intellectual Property Rights.
3. Tariff and Revenue for Indian Policy Strategy.
4. Trade related Indian Property Rights.

LQP stands for:

1. License, Quota and Permit.
2. Liberalisation, Quality Improvement and Production.
3. License, quality and Production.
4. Liberalisation, Quota and Permit.

GATT stands for:

1. General Agreement on trade and tariff.
2. Governments Association for trade and tariff.
3. General Agreement on terms of trade.
4. Government Agreement on terms of trade.

When was New Economic Policy introduced in India?

1. 1991
2. 1981
3. 1995
4. 2000