Economic Reforms Since 1991 - Online Test
Q1. Institutions that engage in mobilisation and allocation of savings
Answer : Option A
Explaination / Solution:
Financial Institutions by engaging in mobilisation and allocation of savings, act as a channel between the savers and borrowers of funds.
Q2. The NEP in 1991 was initiated by the
Answer : Option D
Explaination / Solution:
The NEP in 1991 was initiated by the then Union finance minister Dr. Manmohan Singh.
Q3. BOP is
Answer : Option D
Explaination / Solution:
Balance of Payments (BOP) records all external transactions on both current as well as the capital account.
Q4. A company hires regular services from external sources mostly from other countries which were previously provided internally
Answer : Option D
Explaination / Solution:
Outsourcing is the contracting of business processes to external firms usually in developing countries where labour costs are cheaper.
Q5. Monetary policy is the policy of
Answer : Option A
Explaination / Solution:
Monetary policy is the macroeconomic policy laid down by the central bank of the country.
Q6. Which statutory body is having power regarding stock market
Answer : Option A
Explaination / Solution:
The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India.
Q7. Market in which the securities of government and public companies are traded
Answer : Option B
Explaination / Solution:
Stock exchange is an organised and regulated financial market where securities are bought and sold at prices governed by the forces of demand and supply.
Q8. Which of the following is an example of direct tax
Answer : Option A
Explaination / Solution:
Corporation tax is a direct tax which is imposed on the net income of the company.
Q9. Steps taken towards liberalisation
Answer : Option C
Explaination / Solution:
To liberalise the Indian economy, industrial licensing was abolished, many industries reserved for the public sector were dereserved and import licensing was also abolished in most industries.
Q10. Sale tax and excise duty are examples of
Answer : Option A
Explaination / Solution:
Sales tax and excise duty are examples of indirect taxes as these are to be paid by the producers or sellers of the commodity but the ultimate burden of the tax rests on the customer.
