Liberalization, Privatization, and Globalization Class 12 MCQ Quiz – Test Your Understanding!

How has the opening up of the Indian economy affected Foreign Direct Investments (FDI) and Foreign Exchange Reserves (FER)?

Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below.

• Assertion (A): In 1991, as an immediate measure to resolve the Balance of Payments crisis, the rupee was devalued against foreign currencies.
• Reason (R): Devaluation of currency was eminent, exchange reserves.

Do you agree that profit-making public sector undertakings (PSUs) should be privatized? Why?

What is disinvestment?

Why does the government identify PSEs and declare them as Maharatnas, Navratnas, and Miniratnas?

What are the advantages of globalization for the Indian economy?

How has the economic reform process affected the agricultural sector in India?

Which of the following statements correctly represents actions taken by the government towards liberalization?

• P: levying high tariffs to discourage import and promote the consumption of domestic goods and services
• Q: devaluation of the rupees to encourage the inflow of foreign exchange
• R: allowing for private banks to make decisions independent of the RBI restrictions
• S: fixing prices of certain industrial goods in order to support increased consumption of these goods to boost the manufacturing industry

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

Which of the following can help reduce the fiscal deficit?

What were the main reasons for introducing reforms in India?

There are two statements given below, marked as Statement (1) and Statement (2). Read the statements and choose the correct option.

• Statement (1): Air India, a fully owned Public Sector Undertaking (PSU) was disinvested and sold to a private entity.
• Statement (2): Public Sector Undertakings (PSU) are sold to create more direct and/or indirect employment opportunities in the country.

What is the main impact of the economic reform process on the Indian economy?

What were the two major steps taken by the Government of India in the financial sector under the Economic Reforms of 1991?

There are two statements given below, marked as Assertion (A) and Reason (R). Read the statements and choose the correct option.

• Assertion (A): According to the Government of India, the disinvestment of Public Sector Enterprises has brought accountability and professionalism to them.
• Reason (R): The Government of India used disinvestment mainly to improve financial discipline and facilitate modernization.