SSC CGL Economy – Economic Reforms since 1991 – Level 2 · Exam Level · Tier I Sprint

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SSC CGL Economy – Economic Reforms since 1991 – Level 2 · Exam Level · Tier I Sprint – 18 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.  
ClassificationWhich of the following is a stabilisation measure?

Correct Answer: B [Reducing the fiscal deficit]

Explanation:

Short-run step to control inflation and the BoP.

2.  
ClassificationWhich of the following is a structural reform measure?

Correct Answer: A [Abolishing industrial licensing]

Explanation:

Structural reforms raise efficiency in the long run.

3.  
The rupee goes from ₹ 45 to ₹ 60 per dollar. The rupee has depreciated by:

Correct Answer: C [25%]

Explanation:

15/60 = 25% (the dollar rose 15/45 ≈ 33.33%).

4.  
The rupee goes from ₹ 56 to ₹ 70 per dollar. The dollar has appreciated by:

Correct Answer: D [25%]

Explanation:

14/56 = 25% (the rupee fell 14/70 = 20%).

5.  
Match the followingMatch the committee with its area:
1. Narasimham 2. Malhotra 3. Chelliah
a. Insurance b. Tax c. Banking

Correct Answer: D [1-c, 2-a, 3-b]

Explanation:

Narasimham – banking; Malhotra – insurance; Chelliah – tax.

6.  
ChronologyArrange in chronological order:
1. FEMA 2. LERMS 3. WTO 4. Current-account convertibility

Correct Answer: A [2, 4, 3, 1]

Explanation:

Answer: 2, 4, 3, 1. 1992 → 1994 → 1995 → 1999.

7.  
The government holds 66% of a CPSE and sells 12%. Its stake now is:

Correct Answer: C [54% – still a government company]

Explanation:

Answer: 54% – still a government company. 66 − 12 = 54% ≥ 51%.

8.  
Under FEMA, a breach of the law is treated as a:

Correct Answer: B [Civil offence]

Explanation:

FERA made it criminal; FEMA civil.

9.  
ClassificationRemoval of quantitative restrictions on imports is mainly part of:

Correct Answer: C [Globalisation]

Explanation:

It opens the economy to world trade.

10.  
True/False drillhow many are true?
(i) SEBI was set up in 1988.
(ii) FEMA was passed in 1999.
(iii) The Narasimham Committee dealt with insurance.
(iv) GST came into force on 1 July 2017.

Correct Answer: D [Three]

Explanation:

(iii) is false – Narasimham dealt with banking.

11.  
At 6% annual growth, GDP doubles in about:

Correct Answer: A [11.7 years]

Explanation:

Rule of 70: 70/6 ≈ 11.7 (exact ≈ 11.9).

12.  
Which statement about the Department of Disinvestment is correct (DIPAM website)?

Correct Answer: B [It was renamed DIPAM on 14 April 2016]

Explanation:

Created 10 Dec 1999; renamed 14 Apr 2016.

13.  
Data-basedAn import costs $ 500. The rupee moves from ₹ 80 to ₹ 82 per dollar. The rupee cost rises by:

Correct Answer: A [₹ 1,000]

Explanation:

Answer: ₹ 1,000. 500 × 2 = ₹ 1,000 (2.5%).

14.  
Odd one outOdd one out (by the decade of the event):

Correct Answer: C [GST launch]

Explanation:

GST is 2017; the others are 1990s reforms.

15.  
Reverse questionWhich reform is described as 'one indirect tax across India with central, state and integrated components'?

Correct Answer: B [GST]

Explanation:

Answer: GST. CGST, SGST and IGST.

16.  
Fill in the blankFill in the blank (as on 15 October 2026): The four Labour Codes were made effective from ____.

Correct Answer: D [21 November 2025]

Explanation:

PIB, Ministry of Labour & Employment, 21 November 2025.

17.  
Match the followingMatch the regulator with its law:
1. TRAI 2. CCI 3. IBBI
a. Competition Act, 2002 b. IBC, 2016 c. TRAI Act, 1997

Correct Answer: A [1-c, 2-a, 3-b]

Explanation:

TRAI 1997; CCI 2002; IBBI 2016.

18.  
Odd one outWhich of the following was NOT a reason for the 1991 reforms?

Correct Answer: C [Excess foreign exchange reserves]

Explanation:

Reserves were dangerously low, not in excess.

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