SSC CGL Economy – Economic Reforms since 1991 – Level 1 · Warm-up · Tier I Level

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SSC CGL Economy – Economic Reforms since 1991 – Level 1 · Warm-up · Tier I Level – 20 questions, subject: Indian Economy. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  
Who was the Prime Minister of India when the New Economic Policy was launched in 1991?

Correct Answer: C [P. V. Narasimha Rao]

Explanation:

PM P. V. Narasimha Rao with FM Manmohan Singh.

2.  
The 1991 crisis in India was mainly a crisis of:

Correct Answer: D [Balance of payments]

Explanation:

Forex reserves fell to about two weeks of imports.

3.  
LPG in the context of the 1991 reforms stands for:

Correct Answer: B [Liberalisation, Privatisation, Globalisation]

Explanation:

The three directions of the NEP.

4.  
The Liberalised Exchange Rate Management System (LERMS), a dual exchange rate, was introduced in:

Correct Answer: A [1992]

Explanation:

Year Ladder: 91 devaluation → 92 LERMS → 93 market rate → 94 current-account convertibility.

5.  
Banking-sector reforms after 1991 were based on the report of the:

Correct Answer: A [Narasimham Committee]

Explanation:

Narasimham Committees of 1991 and 1998.

6.  
Insurance-sector reforms were recommended by the:

Correct Answer: D [Malhotra Committee]

Explanation:

R. N. Malhotra Committee, 1993.

7.  
The Tax Reforms Committee of 1991 was headed by:

Correct Answer: C [Raja J. Chelliah]

Explanation:

Answer: Raja J. Chelliah. Chelliah Committee, 1991.

8.  
The second Narasimham Committee, on banking-sector reforms, reported in:

Correct Answer: B [1998]

Explanation:

Narasimham I (1991) – financial system; Narasimham II (1998) – banking sector.

9.  
Which Act replaced the MRTP Act, 1969?

Correct Answer: C [Competition Act, 2002]

Explanation:

It set up the Competition Commission of India.

10.  
The Act that created the insurance regulator was passed in:

Correct Answer: D [1999]

Explanation:

IRDA Act, 1999 – after the Malhotra Committee (set up in 1993).

11.  
Sale of a part of the government's shares in a public sector enterprise is called:

Correct Answer: B [Disinvestment]

Explanation:

Disinvestment – it may or may not transfer control.

12.  
DIPAM functions under which ministry?

Correct Answer: A [Ministry of Finance]

Explanation:

DIPAM website: a department under the Ministry of Finance.

13.  
In 1991 the rupee was devalued in two steps in:

Correct Answer: C [July 1991]

Explanation:

Devaluation came in July 1991; LERMS (a dual rate) followed in 1992.

14.  
India's current account was made convertible in:

Correct Answer: D [1994]

Explanation:

Current-account convertibility, 1994.

15.  
Providing call-centre and software services to foreign firms from India is an example of:

Correct Answer: A [Outsourcing]

Explanation:

Answer: Outsourcing. A face of globalisation.

16.  
The Insolvency and Bankruptcy Code was enacted in:

Correct Answer: B [2016]

Explanation:

Answer: 2016. IBC, 2016; regulator IBBI.

17.  
The Telecom Regulatory Authority of India (TRAI) was set up in:

Correct Answer: B [1997]

Explanation:

TRAI, 1997 – an independent telecom regulator.

18.  
Which law de-licensed electricity generation?

Correct Answer: C [Electricity Act, 2003]

Explanation:

Answer: Electricity Act, 2003. Electricity Act, 2003.

19.  
Under the IBC, the adjudicating authority for insolvency of companies is the:

Correct Answer: D [NCLT]

Explanation:

National Company Law Tribunal.

20.  
FRBM Act, 2003 mainly aims to control the:

Correct Answer: A [Fiscal and revenue deficits]

Explanation:

Answer: Fiscal and revenue deficits. Fiscal responsibility law.

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