Multiple choice

Which of the following statements is correct?

  1. The public sector was given a dominant position in the newly independent India.

  2. The foreign trade policy post independence allowed free trade of all goods and services.

  3. Monetary policy post independence sought to keep the CRR at a very low level.

  4. None of the above

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

After independence, India adopted a mixed economy model with the public sector given dominance in key industries. Option B is incorrect as India followed a restrictive trade policy, not free trade. Option C is incorrect as CRR was kept relatively high to control credit and money supply.

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