Tag: economic system and economic policies

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Questions Related to economic system and economic policies

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Which of the following is NOT a function of a commercial in India?

  1. Accepting deposits from publics

  2. Selling National Savings Certificates

  3. Keeping valuables in safe custody

  4. Transferring money from one place to the other
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Selling National Savings Certificates (NSCs) is a function of the Post Office, which is a government-run savings organization, not a commercial bank.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Many a time we read about Special Drawing Right (SDR) in newspapers. As per its definition, SDR is a monetary unit of the reserve assets of which of the following organisations/agencies?

  1. World Bank

  2. International Monetary Fund (IMF)

  3. Asian Development Bank

  4. Reserve Bank of India
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Many a time we read about Special Drawing Right (SDR) in newspapers. As per its definition, SDR is a monetary unit of the reserve assets of International Monetary Fund(IMF). Special Drawing Right is a type of foreign-exchange reserve. It is introduced in 1969.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Special Drawing Rights are the rights of countries provided by

  1. World Bank

  2. IMF

  3. ADB

  4. Federal Reserve
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Many a time we read about Special Drawing Right (SDR) in newspapers. As per its definition, SDR is a monetary unit of the reserve assets of International Monetary Fund(IMF). Special Drawing Right is a type of foreign-exchange reserve. It is introduced in 1969.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Which of the following statements is true about International Monetary Fund (IMF)?

  1. It provides Ways and Means Funds to member countries.

  2. It is an agency of the World Bank and is situated in Prague.

  3. It makes all the rules and regulations in relation to the World Trade between the nations.

  4. On becoming its member, countries get finance as temporary balance-of-payment needs.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

IMF stands for International Monetary Fund. It is true that on becoming its member, countries get finance as temporary balance-of-payment needs. IMF works to ensure global market cooperation and financial stability of the global economyy.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

State whether the following statements are True or False.
New Economic Policy of 1991 aimed at liberalisation of Indian Economy.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

It is true that New Economic Policy of 1991 aimed at liberalization of Indian Economy.Liberalization refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprise. It includes:
a) Abolishing industrial licensing requirement in most of the industries.
b) Freedom in deciding the scale of business activities.
c) Freedom in fixing prices of goods and services.
d) Reduction in tax rates.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Liberalization means ______.

  1. removal of trade barriers

  2. opening border with neighbouring countries

  3. relaxation of Government policies and regulations in order to encourage free and fair growth of trade and industry.

  4. abolition of various business laws and acts
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Liberalization refers to the relaxation of Government policies and regulations in order to encourage free and fair growth of trade and industry. It is one of the policies under new economic policy which was adopted by Indian economy in 1991. It promoted free and fair trade.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

India started liberalization with effect from ______.

  1. 1956

  2. 1991

  3. 2001

  4. 1998
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Liberalization refers to the relaxation of Government policies and regulations in order to encourage free and fair growth of trade and industry. It is one of the policies under new economic policy which was adopted by Indian economy in 1991. It promoted free and fair trade.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Privatization means ________.

  1. transfer of assets or services from public ownership to private ownership in part or full.

  2. sale of all government assets and properties to public.

  3. sale of profit making companies to multi-national companies.

  4. sale of loss making PSUs to foreign countries.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Privatization includes ownership, organizational and operational measures. It refers to the process of transferring or sale of the public ownership to private ownership in part or full. It is a process of reducing government's role in the economy.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

 _______ is/are the ways towards liberalization.

  1. Privatisation

  2. Liberalize economic policies.

  3. Financial sector reforms.

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Ways towards liberalization are:
1) Privatization: It refers to the sale or transfer of public assets to the private ownership.
2) Liberalize economic policies: Restriction from economic policies were abolished and liberalized in the global arena with the global market orientation.
3) Financial sector reforms: Financial sector was reformed in favor of liberalization.