NCERT Class 11 Economics Indian Economic Development Chapter 3 Liberalisation, Privatisation and Globalisation: An Appraisal Extra Questions and Answers
Class 11 Economics Indian Economic Development Chapter 3 Extra Inside Questions and Answers – Liberalisation, Privatisation and Globalisation: An Appraisal. Here in this Page Class XI Students can Learn Extra Questions & Answer 3rd Chapter Economics Indian Economic Development fully Inside.
We Provided Here Liberalisation, Privatisation and Globalisation: An Appraisal Economics Indian Economic Development Chapter 3 Long Answer Type Question, MCQ Questions & Answer, Short Answer Type Questions (2 or 3 marks), and Very Short answer Type Question (1 marks) Solution.
Class 11 Economics Indian Economic Development Chapter 3 Inside based Question
Economics Indian Economic Development Chapter 3 Liberalisation, Privatisation and Globalisation: An Appraisal Class 11 Inside 5 Marks, 3 marks, 2 Marks & And 1 Marks Important Questions and Answers.
1.) The origin of the financial crisis can be traced from the inefficient management of the Indian economy in the .
(a) 1980
(b) 1988
(c) 1981
(d)1984
And Option (a)
2.) When expenditure is more than income, the government borrows to finance ……from banks
(a) financial institution
(b) the deficit
(c) surplus
(d)None of the above
Ans – (b)
3.) At the time of import we make payment in…..
(a) Cheque
(b) Rupees
(c) Dollars
(d)None of the above
Ans- Option (c)
4.) Which of the following is not a economic policy.
(a) Privatization
(b) Liberalization
(c) globalization
(d)Nationalization
Ans -option (d)
5.) What is full form of FII.
(a) Foreign International Institutions
(b) Foreign Institutional Investors.
(c) Foreign Institutional Investments.
(d)None of the above
Ans – option (b)
6.) …..have been removed to increase the competitive position of Indian goods in the international markets.
(a) Import duties
(b) Export duties
(c) Both (a) and (b)
(d)None of the above
Ans – option (b)
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7.) Privatisation of the public sector enterprises by selling off part of the equity of PSEs to the public is known as
(a)disinvestment.
(b) Investment
(c) divestment
(d) None of the above
Ans – option (a).
8.)The WTO was founded in ……..asthe successor organisation to the General Agreement on Trade and Tariff (GATT).
(a) 1996
(b) 1995
(c) 1998
(d)1997
Ans – option (b)
1.) Explain the New Economic policy.
Ans -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. This set of policies can broadly be classified into two groups: the stabilization measures and the structural reform measures. Stabilization measures are short- term measures, intended to correct some of the weaknesses that have developed in the balance ofpayments and to bring inflationunder control. In simple words, this means that there was a need tomaintain sufficient foreign exchangereserves and keep the rising prices under control. On the other hand,structural reform policies are long-termmeasures, aimed at improving theefficiency of the economy and increasingits international competitiveness byremoving the rigidities in varioussegments of the Indian economy. Thegovernment initiated a variety ofpolicies which fall under three heads viz., liberalization, privatization and globalization.
2.) Explain the ways in which regulatory mechanisms were enforced.
Ans-In India, regulatory mechanisms wereen forced in various ways:(i) industrial licensing under which every entrepreneur had to get permission from government officials to start a firm, close a firm or decide the amount of goods that could be produced.
(ii) private sector was not allowed in many industries.
(iii) some goods could be produced only in small-scale industries.
(iv) controls on price fixation and distribution of selected industrial products.
3.) Explain the Financial Sector Reforms.
Ans -Financial sector includes financialinstitutions, such ascommercialbanks, investment banks, stockexchange operations and foreignexchange market. The financialsector in India is regulated by theReserve Bank of India (RBI). You maybe aware that all banks and otherfinancial institutions in India areregulated through various norms andregulations of the RBI. The RBIdecides the amount of money thatthe banks can keep with themselves,fixes interest rates, nature of lendingto various sectors, etc. One of themajor aims of financial sector reformsis to reduce the role of RBI fromregulator to facilitator of financialsector. This means that the financialsector may be allowed to takedecisions on many matters withoutconsulting the RBI.
4.) Explain the tax reforms
Ans-Tax reforms are concerned with the reforms in the government’s taxation and public expenditure policies, which are collectively known as its fiscal policy. There are two types of taxes: direct andindirect. Direct taxes consist of taxes on incomes of individuals, as well as, profits of business enterprises. Since 1991, there has been a continuousreduction in the taxes on individualincomes as it was felt that high rates ofincome tax were an important reasonfor tax evasion. It is now widelyaccepted that moderate rates of incometaxencourage savings and voluntarydisclosure of income. The rate of corporation tax, which was very highearlier, has been gradually reduced.Efforts have also been made to reformthe indirect taxes, taxes levied on commodities, in order to facilitate theestablishment of a common nationalmarket for goods and commodities.
5.) Explain Foreign Exchange Reforms.
Ans -The firstimportant reform in the external sectorwas made in the foreign exchangemarket. In 1991, as an immediatemeasure to resolve the balance ofpayments crisis, the rupee wasdevalued against foreign currencies.This led to an increase in the inflow offoreign exchange. It also set the tone tofree the determination of rupee valuein the foreign exchange market fromgovernment control. Now, more oftenthan not, markets determine exchangerates based on the demand and supplyof foreign exchange.
6.) what are the aim of trade policy reform.
Ans -The trade policy reforms aimed at:
(i)dismantling of quantitative restrictionson imports and exports.
(ii) reductionof tariff rates.
(iii) removal oflicensing procedures for imports.
7.) Explain the way in which government company convert into private.
Ans – Government companies are converted into privatecompanies in two ways:
(i) by withdrawal of the government fromownership and management ofpublic sector companies
(ii) by outright sale of public sectorcompanies.
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