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1. General Agreement on Trade and Tariff (GATT) was established in 1948 with how many countries as global trade partners?

2. Reforms have not been able to benefit agriculture:

Because public investment in agriculture sector especially in infrastructure has fallen

Due to rise in subsidy

Due to rise in Import duty on agriculture

Due to shift from production of cash crops to food crops

3. Which of the following is not a component of fiscal reforms?

Taxation reforms

Public expenditure reforms

Change in interest rate

Control of public debt

4. How can globalisation increase the standard of living of the people in a country?

By offering more products to buy

By increasing rural to urban migration

By improving working conditions for factory workers

By making cheaper products available due to increased competition

5. Which of the following was/were the reason(s) for initiation of economic reforms in India?

High fiscal deficit

Gulf crisis

Huge loss in balance of payments

All of these

6. Structural measures were intended to:

Improve the efficiency of the economy

Increase international competitiveness

Maintain sufficient foreign exchange

Both (a) and (b)

7. Statement 1: Trade and Investment Policy reforms were initiated to increase international competitiveness of industrial production and also foreign investments and technology into the economy.

Statement 2: The aim was also to promote the efficiency of local industries and adoption of modern technologies.

Statement 1 is true and statement 2 is false

Statement 1 is false and statement 2 is true

Both statements 1 and 2 are true

Both statements 1 and 2 are false

8. Taxes imposed on income of individuals are:

Indirect taxes

Tarrif barrier

Direct taxes

All of these

9. ___________ was the objective of Import Substitution policy in India.

Production of high quality products

Protection of domestic industries from foreign competition

Promote imports

Promote privatisation

10. Identify the economic problem of Indian economy during 1991 as one of the causes behind economic reforms as depicted in the given picture.

Deficit in BOP

Poor performance of public sector

Huge burden of debts

Inflationary pressure

11. Import licensing was abolished except in case of :

Hazardous items

Environmental sensitive industries

Both (a) and (b)

Neither (a) nor (b)

12. International Bank for Reconstruction and Development (IBRD) is popularly known as:

World Bank

Bank of Tokyo

American Express

HSBC Bank

13. Fiscal policy of the government is known as:

Taxation Policy

Government expenditure policy

Both (a) and (b)

Neither (a) nor (b)

14. The trade policy reforms were aimed at:

Dismantling of quantitative restrictions on imports and exports

Reduction of tariff rates

Removal of licensing procedures for imports

All of these

15. Stabilisation measures were intended to correct:

Balance of Payment deficit

Inflationary situations

Depleting foreign exchange reserves

All of these

16. Identify the correct pair from the following Column I and Column II and choose the correct alternative:

Column I

Column II

A. New Economic Policy

B. Goods and Services Tax

C. Demonetisation

D. GATT

(i) It was initiated in 1990

(ii) It was introduced in 2018

(iii) Recently, it was done in 2016.

(iv) It was established in 1950.

Alternatives:

A – (i)

B – (ii)

C – (iii)

D – (iv)

17. The government has made efforts to improve the efficiency of PSU’s by giving them __________ in taking managerial decisions.

Money

Financial assistance

Autonomy

None of these

18. Statement 1: Economic Reforms of 1991 paved the way for the liberalisation of Indian economy.

Statement 2: Economic Reforms of 1991 relaxed the restrictions imposed by the government on private sector.

Statement 1 is true and statement 2 is false

Statement 1 is false and statement 2 is true

Both statements 1 and 2 are true

Both statements 1 and 2 are false

19. Identify the correct pair from the following Column I and Column II and choose the correct alternative:

Column I

Column II

A. World Trade Organisation

B. R eserve Bank of India

C. International Monetary Fund

D. GATT

(i) It was founded in 1999.

(ii) It is the Central Bank of Canada.

(iii) It facilitates lending for reconstruction and development.

(iv) It was established in 1960.

Alternatives:

A – (i)

B – (ii)

C – (iii)

D – (iv)

20. Statement 1: India is often called as the ‘outsourcing hub’ of the world.

Statement 2: Availability of skilled manpower is one of the prime factors responsible for the status gained by India at the international platform.

Statement 1 is true and statement 2 is false

Statement 1 is false and statement 2 is true

Both statements 1 and 2 are true

Both statements 1 and 2 are false

21. In India, financial sector is regulated by:

RBI

Central government

SEBI

Both (a) and (b)

22. Assertion (A): India is the favourite destination of outsourcing.

Reason (R): India has abundance of labour available at higher wage rate.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R) is false

Assertion (A) is false but Reason (R) is true

23. Financial sector reforms mainly relate to:

banking sector

insurance sector

both (a) and (b)

stock market

24. GATT was established in:

1958

1948

1968

1995

25. Assertion (A): In 1991, Indian rupee devalued against all major currencies.

Reason (R): Devaluation results in more flow of foreign exchange.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R) is false

Assertion (A) is false but Reason (R) is true

26. Which of the following policies was adopted to increase the competitive position of Indian goods in the international markets?

Export duties were removed

Import licensing was abolished

Rate of corporation tax was reduced

Foreign Institutional Investors (FII) were allowed to invest in India

27. The process of privatisation is where:

a company is transferred to a non-profit organization.

services that were previously supplied are outsourced.

a few public sector enterprises are sold to private sector.

a state industry merges with or takes over a private or publicly owned company.

28. Foreign exchange reforms were done by:

Devaluing the rupee against foreign currency

Introducing the fixed exchange rate system

Determining exchange rate by the market access

Both (a) and (c)

29. __________ was the predecessor organisation to World Trade Organisation.

International Bank for Reconstruction and Development (IBRD)

International Monetary Fund (IMD)

Reserve Bank of India (RBI)

General Agreement on Tariffs and Trade (GATT)

30. Which of the following step was taken by the government to improve the efficiency of Public Sector Undertakings (PSUs)?

Operational autonomy

Managerial autonomy

Financial autonomy

All of these

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