Free Reforming the Economy 03 Practice Test - 12th Grade - Commerce 

Question 1

The introduction of MRTP Act falls under which of the following categories?

A.

Liberalisation

B.

Privatisation

C.

Globalisation

D.

None of the above

SOLUTION

Solution : A

MRTP was about de-control, and thus falls under liberalisation reforms.

Question 2

How many industries retain licensing after the LPG reforms even today?

A.

3

B.

5

C.

10

D.

18

SOLUTION

Solution : B

The following industries remain within licensing control:

Question 3

The correct expansion of the MRTP Act is

A.

Market Revenues and Tax Policies

B.

Monopoly Reforms and Tariffs Policy

C.

Monopoly and Restrictive Trade Practices

D.

Multi-Reforms for Trade Practices

SOLUTION

Solution : C

MRTP Act stands for Monopoly and Restrictive Trade Practices.

Question 4

Expand FEMA. ___

SOLUTION

Solution :

FEMA replaced FERA in 1999

Question 5

The action of an organisation whereby an asset or a subsidiary is sold off is known as ___

SOLUTION

Solution :

When the government stake in a public enterprise is reduced by selling off the assets, it is called a disinvestment.

Question 6

Expand WTO.

A.

World Tourism Organisation

B.

World Transport Organisation

C.

World Tariff Organisation

D.

World Trade Organisation

SOLUTION

Solution : D

World Trade Organisation is an intergovernmental organisation acting as a regulator of global trade.

Question 7

India is a member of the WTO.

A.

True

B.

False

SOLUTION

Solution : A

India joined WTO in 1995, and has been a member since.

Question 8

The Third Generation reforms focused primarily on which of these aspects?

A.

Factor markets

B.

Decentralisation

C.

Exports

D.

Infrastructure

SOLUTION

Solution : B

The third generation of reforms, around the 10th FYP, emphasised on decentralisation.

Question 9

How many countries signed the GATT when it was established?

A.

21

B.

23

C.

26

D.

30

SOLUTION

Solution : B

23 countries joined as members of the GATT in 1948.

Question 10

The policy reforms through which the dominance of the public sector is reduced is called ___ .

SOLUTION

Solution :

Privatisation comprises of reforms to reduce presence of the public sector in key industries.

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