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

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

Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

• Assertion (A): Every year government fixes a target for disinvestment of Public Sector Enterprises (PSEs).
• Reason (R): Disinvestment is an excellent tool for discarding the loss incurring Public Sector Enterprises (PSEs).

Which two taxes were subsumed in Goods and Services Tax (GST)?

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

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

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

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.

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.

What is the main objective of disinvestment in India?

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

What are the advantages of globalization for the Indian economy?

…………….was the Indian Finance Minister in 1991, acknowledged for his capabilities to steer away the economic crisis looming large on the erstwhile Indian Economy.

What were the main reasons for introducing reforms in India?

Which of the following can help reduce the fiscal deficit?

What is outsourcing?