Free Reforming the Economy 01 Practice Test - 12th Grade - Commerce 

Question 1

In India, the balance of payments has

A.

Regularly been skewed to a surplus

B.

Always been balanced

C.

Remained constant

D.

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:

A.

Appreciation

B.

Revaluation

C.

Devaluation

D.

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?

A.

International Monetary Fund 

B.

World Bank

C.

Government of China

D.

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?

A.

Trade

B.

Industry

C.

Tax

D.

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?

A.

Ratnas

B.

Nakshatras

C.

Prernas

D.

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?

A.

India

B.

Japan

C.

Vietnam

D.

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?

A.

3

B.

4

C.

5

D.

6

SOLUTION

Solution : B

There were four generations of reforms.

Question 8

Which of the following bodies was set up to oversee FDI?

A.

FITC

B.

FIPB

C.

FAIB

D.

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?

A.

Alcohol

B.

Textiles

C.

Rubber

D.

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?

A.

Competition Act

B.

Monopoly Act

C.

Licensing Act

D.

Foreign Exchange Act

SOLUTION

Solution : A

The Competition Act was enacted in 2002.

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