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

IBRD is also known as __________.

  1. International Monetary Fund (IMF)

  2. United Nations

  3. World bank

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In 1991, India met with an economic crisis relating to its external debt. India approached the International Bank for Reconstruction and Development (IBRD), popularly known as World Bank and the International Monetary Fund (IMF), and received $7 billion as loan to manage the crisis.

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 were short-term measures in the NEP?

  1. Structural reform measures

  2. Stabilisation measures

  3. Both A and B

  4. None
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
India agreed to the conditionalities of World Bank and IMF and announced the New Economic Policy (NEP). The NEP consisted of wide ranging economic reforms. This set of policies can broadly be classified into two groups: the  stabilisation measures and the structural reform measures. Stabilisation measures are short term measures, on the other hand, structural reform policies are long-term measures.
Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Which policy was announced when India agreed to the conditionalities imposed by IMF and IBRD?

  1. Fiscal policy

  2. New Economic Policy

  3. Exim Policy

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In 1991, facing a balance of payments crisis, India sought assistance from the IMF and World Bank. The conditionalities imposed led to the adoption of the New Economic Policy, which introduced liberalisation, privatisation, and globalisation.

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

The NEP was classified into two groups. Which are the two groups?

  1. Stabilization measures and Structural reform measures

  2. Corrective measures and recovery measures

  3. Industrial development measures and remedial measures

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
The NEP consisted of wide ranging economic reforms. NEP stands for New Economic Policy. This set of policies can broadly be classified into two groups: the stabilization measures and the structural reform measures.
Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

What did NEP focus on?

  1. Create a more competitive environment

  2. Remove barriers to entry

  3. Create employment

  4. Both A and B
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
India agreed to the conditionalities of World Bank and IMF and announced the New Economic Policy (NEP). The NEP consisted of wide ranging economic reforms. The thrust of the policies was towards creating a more competitive
environment in the economy and removing the barriers to entry and growth of firms. Creation of employment was not the objective of NEP.
Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

What were the primary reasons for the economic crisis in the 1980s?

  1. Spending on development programmes which didn't generate additional revenue

  2. Internal sources like taxation weren't generating enough revenue

  3. Income from public sector was not very high

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
The origin of the financial crisis can be traced from the inefficient management of the Indian economy in the 1980s. Development policies required that even though the revenues were very low, the government had to overshoot its revenue to meet problems like  unemployment, poverty and population explosion. The continued spending on development programmes of the government did not generate additional revenue.
Moreover, the government was not able to generate sufficiently from internal sources such as taxation. The income from public sector undertakings was also not very high to meet the growing expenditure.
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 were long-term measures in the NEP?

  1. Structural reform measures

  2. Stabilisation measures

  3. Both A and B

  4. None
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

India agreed to the conditionalities of World Bank and IMF and announced the New Economic Policy (NEP). The NEP consisted of wide ranging economic reforms. This set of policies can broadly be classified into two groups: the  stabilisation measures and the structural reform measures. Stabilisation measures are short term measures, on the other hand, structural reform policies are long-term measures.

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

Stabilisation measures were intended to __________.

  1. correct balance of payments

  2. improving efficiency of the economy

  3. control inflation

  4. A and C
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

India agreed to the conditionalities of World Bank and IMF and announced the New Economic Policy (NEP). The NEP consisted of wide ranging economic reforms. This set of policies can broadly be classified into two groups: the  stabilisation measures and the structural reform measures. Stabilisation measures are short term measures, intended to correct some of the weaknesses that have developed in the balance of payments and to bring inflation under control. In simple words, this means that there was a need to maintain sufficient foreign exchange reserves and keep the rising prices under control.

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

Which industries are reserved for the public sector today, many years after LPG policy was introduced?

  1. Defence equipments

  2. Atomic energy generation

  3. Railway transport

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The reform policies abolished almost all industrial licensing. The industries which are now reserved for the public sector are defence equipments, atomic energy generation and railway transport.

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

How much did the IMF and IBRD lend the Indian Government during the crisis?

  1. Rs. 7 billion
  2. $ 7 billion

  3. Rs. 6 billion
  4. $ 6 billion
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
India approached the International Bank for Reconstruction and Development (IBRD), popularly known as World Bank and the International Monetary Fund (IMF), and received $7 billion as loan to manage the crisis during 1991.