Economic Reforms Since 1991 - Online Test
Q1. The main changes in fiscal policy are
Answer : Option C
Explaination / Solution:
Fiscal policy is the expenditure and revenue policy of the government. Reduction of quantitative restrictions on imports and exports led to the fall in taxes that the government used to collect and so it is a change in the fiscal policy.
Q2. Which policy do these changes belong to (i) SLR and CRR reduced by RBI to increase the availability of funds (ii) Bank rate reduced (iii) SEBI made statutory
Answer : Option A
Explaination / Solution:
Under the New Economic Policy (NEP), all of these changes were made to the monetary policy and the monetary policy was also disassociated from the fiscal policy.
