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

In newly independent India, the public sector was indeed given a dominant position through the Industrial Policy Resolution 1948 and 1956, which reserved key industries for the state. Foreign trade policy was protectionist with strict import controls, not free trade. Monetary policy post-independence did not focus on keeping CRR low - in fact, CRR and SLR were often kept high to control credit. Therefore statement A is correct while B and C are incorrect.

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