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Which of the following statements is correct with regard to external sector in the prereform period?
  • a)
    The foreign trade policy was very liberal; it allowed import of all types of goods.
  • b)
    Import of foodgrains was strictly prohibited.
  • c)
    The balance of payments situation was quite comfortable.
  • d)
    None of the above.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which of the following statements is correct with regard to external s...
External Sector in the Prereform Period:

Explanation:
- The foreign trade policy in the prereform period was not very liberal. It was characterized by high tariffs and restrictions on imports to protect domestic industries.
- Import of foodgrains was not strictly prohibited, but it was heavily regulated through quotas and restrictions to ensure food security.
- The balance of payments situation in the prereform period was not comfortable. India faced persistent deficits in its balance of payments, leading to a reliance on external borrowing and aid.
Therefore, the correct statement with regard to the external sector in the prereform period is option 'D' - None of the above.
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Community Answer
Which of the following statements is correct with regard to external s...
Yes, as all the above option are not correct with regard to that period,
a) foreign trade policy was very strict
b) it was prohibited but not Strictly
c) BOP situation was in a very bad condition
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Which of the following statements is correct with regard to external sector in the prereform period?a)The foreign trade policy was very liberal; it allowed import of all types of goods.b)Import of foodgrains was strictly prohibited.c)The balance of payments situation was quite comfortable.d)None of the above.Correct answer is option 'D'. Can you explain this answer?
Question Description
Which of the following statements is correct with regard to external sector in the prereform period?a)The foreign trade policy was very liberal; it allowed import of all types of goods.b)Import of foodgrains was strictly prohibited.c)The balance of payments situation was quite comfortable.d)None of the above.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statements is correct with regard to external sector in the prereform period?a)The foreign trade policy was very liberal; it allowed import of all types of goods.b)Import of foodgrains was strictly prohibited.c)The balance of payments situation was quite comfortable.d)None of the above.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements is correct with regard to external sector in the prereform period?a)The foreign trade policy was very liberal; it allowed import of all types of goods.b)Import of foodgrains was strictly prohibited.c)The balance of payments situation was quite comfortable.d)None of the above.Correct answer is option 'D'. Can you explain this answer?.
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