I. Choose the correct alternative.

Question 1.
In which year did India adopt the economic reforms?
(A) 1991
(B) 1993
(C) 1998
(D) 2001

Answer

Answer: (A) 1991

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Question 2.
Why there was a need for economic reforms in India?
(A) Due to fiscal deficit
(B) Due to adverse BOP
(C) Rise in prices
(D) All of the above

Answer

Answer: (D) All of the above

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Question 3.
When did the Gulf Crisis take place?
(A) 1985
(B) 1990-91
(C) 1995
(D) 1975

Answer

Answer: (B) 1990-91

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Question 4.
How much loan was provided by World Bank and IMF during the nineties to bail India out of the crisis?
(A) $10 million
(B) $10 billion
(C) $7 billion
(D) $20 billion

Answer

Answer: (C) $7 billion

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Question 5.
What is the main feature of New Economic Policy?
(A) Liberalisation
(B) Privatisation
(C) Globalisation
(D) All of the above

Answer

Answer: (D) All of the above

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Question 6.
For how many industries, licensing is still necessary?
(A) 7
(B) 6
(C) 9
(D) 10

Answer

Answer: (B) 6

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Question 7.
How many industries are entirely reserved for the public sector?
(A) 6
(B) 10
(C) 2
(D) 4

Answer

Answer: (C) 2

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Question 8.
What is the investment limit in small scale industries?
(A) 50 lakh
(B) 1 crore
(C) 25 lakh
(D) 75 crore

Answer

Answer: (B) 1 crore

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Question 9.
When was VAT introduced in most of the States of India?
(A) 1995
(B) 2001
(C) 2005
(D) 2006

Answer

Answer: (C) 2005

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Question 10.
How many countries are the members of WTO?
(A) 164
(B) 120
(C) 96
(D) 48

Answer

Answer: (A) 164

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Question 11.
When was WTO established?
(A) 1996
(B) 1998
(C) 2000
(D) 1995

Answer

Answer: (D) 1995

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Question 12.
Where is the headquarters of WTO located?
(A) Italy
(B) Geneva
(C) New York
(D) Washington

Answer

Answer: (B) Geneva

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II. Fill in the blanks with the correct answer.

Question 1.
India met with an economic crisis in 1991 as it failed to repay its _______ from abroad.

Answer

Answer: borrowings

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Question 2.
_______ is the excess of expenditure (borrowings) over income.

Answer

Answer: Deficit

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Question 3.
To overcome the crisis, India approached IMF and World Bank for _________

Answer

Answer: loan

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Question 4.
Economic reforms refer to all those measures that aim at rendering the economy more efficient, competitive and _________

Answer

Answer: developed

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Question 5.
Fiscal policy refers to the revenue and expenditure policy of the government to achieve _______ development in the economy.

Answer

Answer: balanced

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Question 6.
Financial sectors were allowed to take decisions on various matters, without consulting ________

Answer

Answer: RBI

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Question 7.
Trade policy reforms led to the removal of export duties to ________ India’s competitive position.

Answer

Answer: increase

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Question 8.
India has become an important destination for global ______ since the reforms.

Answer

Answer: outsourcing

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Question 9.
Trade between two countries is called ________ trade.

Answer

Answer: bilateral

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Question 10.
The industrial sector has experienced _______ in growth pattern.

Answer

Answer: fluctuations

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III. State whether the following statements are true or false.

Question 1.
Despite efficient management of the Indian economy, India faced an economic crisis in 1991.

Answer

Answer: False

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Question 2.
The crisis led to a rise in the prices of essential goods.

Answer

Answer: True

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Question 3.
Reserve Bank of India announced New Economic Policy as a condition to support the Indian economy.

Answer

Answer: False

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Question 4.
Opening up the economy by removing restrictions on the private sector is called globalisation.

Answer

Answer: False

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Question 5.
Industrial licensing was abolished on all products except on those which were important from a profit point of view.

Answer

Answer: False

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Question 6.
The rupee was devalued to resolve the balance of payments crisis.

Answer

Answer: True

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Question 7.
A fixed exchange rate system was adopted to avoid rigidity in the foreign exchange market.

Answer

Answer: False

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Question 8.
Private ownership is capable of utilising capital and other resources more efficiently.

Answer

Answer: True

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Question 9.
GATT is the successor to the WTO.

Answer

Answer: False

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Question 10.
Opening up the economy resulted in a rapid increase in FDI and foreign exchange reserves.

Answer

Answer: True

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IV. Match the following.

Question 1.

Column-I	Column-II
1. Economic Reforms	(A) 1995
2. Gulf Crisis	(B) 2005
3. WTO	(C) 1990-91
4. VAT	(D) 1991
5. GATT	(E) 1948
6. Liberalisation	(F) Sale of public sector shares
7. Privatisation	(G) Abolition of licensing
8. Globalisation	(H) Integration of domestic economy with rest of the world
9. GST	(I) Stripping a currency unit
10. Demonetization	(J) An indirect tax

Answer

Answer:

Column-I	Column-II
1. Economic Reforms	(D) 1991
2. Gulf Crisis	(C) 1990-91
3. WTO	(A) 1995
4. VAT	(B) 2005
5. GATT	(E) 1948
6. Liberalisation	(G) Abolition of licensing
7. Privatisation	(F) Sale of public sector shares
8. Globalisation	(H) Integration of domestic economy with rest of the world
9. GST	(J) An indirect tax
10. Demonetization	(I) Stripping a currency unit

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