Free Reforming the Economy 01 Practice Test - 12th Grade - Commerce
Question 1
In India, the balance of payments has
Regularly been skewed to a surplus
Always been balanced
Remained constant
Regularly been skewed to a deficit
SOLUTION
Solution : D
India’s BOP has seen a deficit during most years, as India is a net importer.
Question 2
The authorised reduction in the value of a currency against other currencies is known as:
Appreciation
Revaluation
Devaluation
Depreciation
SOLUTION
Solution : C
Devaluation occurs under the authorisation while depreciation occurs due to the market forces.
Question 3
Which institution agreed to lend money to India to cope with the BOP crisis?
International Monetary Fund
World Bank
Government of China
US Government
SOLUTION
Solution : A
The IMF agreed to lend to India under some conditions.
Question 4
De-licensing and abolition of price controls fall under liberalisation of which of the following segments?
Trade
Industry
Tax
Investment
SOLUTION
Solution : B
Industries previously saw heavy red-tapism and control.
Question 5
The well-performing PSUs were given a title as a reward. Which of these is the title?
Ratnas
Nakshatras
Prernas
Shraddhanjali
SOLUTION
Solution : A
Ratnas are the well-performing PSUs. There are several categories of Ratnas- maharatnas, navratnas etc.
Question 6
In which country did the Great Leap Forward take place?
India
Japan
Vietnam
China
SOLUTION
Solution : D
Under Mao Zedong, China witnessed the Great Leap Forward.
Question 7
How many generations of reforms have been initiated since 2000?
3
4
5
6
SOLUTION
Solution : B
There were four generations of reforms.
Question 8
Which of the following bodies was set up to oversee FDI?
FITC
FIPB
FAIB
FPIT
SOLUTION
Solution : B
The Foreign Investment Promotion Board was set up to encourage and foster foreign investment.
Question 9
Which of the following industries remain within government control?
Alcohol
Textiles
Rubber
Gun-powder
SOLUTION
Solution : A and D
Alcohol and gunpowder remain under control of the government.
Question 10
Which act has been enacted in place of the MRTP Act?
Competition Act
Monopoly Act
Licensing Act
Foreign Exchange Act
SOLUTION
Solution : A
The Competition Act was enacted in 2002.