Test: Economic Reforms In India - CA Foundation MCQ

The public sector was given a dominant position in the newly Independent India.

The foreign trade policy post Independence allowed free trade of all goods and services.

Monetary policy post Independence sought to keep the CRR at a very low level.

None of the above.

National debt was nearly 60 per cent of the GNP of India.

Inflation crossed double digits.

Foreign reserves were maintained at a very high level.

None of the above.

It made it compulsory for the industry to obtain license for all projects.

It abolished licensing for all projects except 18 industries of strategic and security importance.

It gave dominant position to the public sector.

None of the above.

5

7

8

3

18

5

10

9

defence.

drugs and pharmaceuticals.

banks.

insurance.

1855

1860

1865

1870

prior approval of central government is required for establishing new undertakings, and expanding the present undertaking.

An industry intending to have more than 100 crore of assets is required to obtain the permission of the central government.

prior approval of central government for establishing new undertakings and expanding existing undertaking is not required.

Two or more companies deciding to amalgamate are required to take the prior approval of the central government.

The mandatory convertibility clause is applicable for all term loans.

The mandatory convertibility clause is applicable for term loans of more than 10 years.

The mandatory convertibility clause is applicable for term loans of less than 10 years.

The mandatory convertibility clause is no longer applicable.

The public sector has been stripped off all its power.

The public sector has been given the commanding heights of the economy.

The public sector’s portfolio will be reviewed with greater realism. The focus will be on strategic high tech and essential infrastructure industries.

The public sector’s management has been passed over to the private sector.

Functioned in a highly regulated environment.

Functioned in a manner detrimental to the general public.

Concentrated on making huge profits.

None of the above.

Bank rate has been increased to 10 per cent.

CRR has been increased to 20 per cent.

CRR has been reduced in stages.

Public sector banks have been asked to raise their funds from their private resources only.

The foreign trade policy was very liberal; it allowed import of all types of goods.

Import of foodgrains was strictly prohibited.

The balance of payments situation was quite comfortable.

None of the above.

Quantitative restrictions have been imposed on a number of tradable items.

Quantitative restrictions have been removed on most of the items except a few goods.

The tariff walls have been further raised.

Foreign investment is now being discouraged.

Foreign Export Revaluation Act.

Funds Exchange Resources Act.

Finance and Export Regulation Association.

Foreign Exchange Regulation Act.

Foreign Exchange Management Act.

Funds Exchange Management Act.

Finance Enhancement Monetary Act.

Future Exchange Management Act.

The number of import licenses has increased.

Only a few types of goods and services can now be exchanged freely.

EPCG scheme has been abolished.

The average tariff rates have been reduced.

Certain thrust areas like agriculture, handlooms, handicrafts etc. have been identified.

Vishesh Krishiupaj Yojana has been started.

‘Served from India’ scheme has been started.

The entry of FDI in India has been restricted.

Direct Foreign Exchange Control.

Direct Finance Exchange Control.

Duty Free Export Credit.

Duty Free Exchange Credit.

Export Promotion Capital Goods.

Expert Programme for Credit Generation.

Exchange Programme for Consumer Goods.

Export Promotion Consumer Goods.

Foreign Import Export Organisation.

Federation of Import Export Organisation.

Forum of Indian Export Organisations.

Federation of Indian Export Organisations.

Policy relating to money and banking in a country.

Policy relating to public revenue and public expenditure.

Policy relating to non-banking financial institutions.

None of the above.

High levels of government expenditures.

Insufficient revenues.

Poor returns on government investments.

All of the above.

Common Entity Value Added Tax.

Corporate Entities Value Added Tax.

Central Value Added Tax.

None of the above.

Foreign Regulation and Budget Management Act. 

Fiscal Responsibility and Budget Management Act.

Finance Regulations and Bonds Management Association.

Funds Reallocation and Budget Management Act.

Revenue-led fiscal consolidation.

Better expenditure outcomes.

Rationalisation of tax regime.

All of the above.

Keep fiscal deficits to the targeted levels.

Fully implement industrial deregulation.

Fully open the economy to trade.

All of the above.

The system of phased manufacturing programme approved on case to case basis will not be applicable to new projects.

The system of phased manufacturing programme will be applicable to new projects.

The system of phased manufacturing programmes will be applicable to new projects costing more than 10 crores.

None of the above.

Administered interest rates structure.

Quantitative restrictions on credit flow.

High revenue requirements.

Keeping very less lendable resources for the priority sector.

World Trade Organisation.

World Transport Organisation.

World Tariff Organisation.

Women Teachers Organisation.