SSC CGL Economy – Economic Reforms since 1991 – Level 3 · Challenge

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SSC CGL Economy – Economic Reforms since 1991 – Level 3 · Challenge – 11 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.  
Statement-basedWhich is/are correct?
I. Devaluation is a stabilisation measure.
II. Disinvestment always transfers management control.
III. FEMA replaced FERA.

Correct Answer: D [I and III only]

Explanation:

A minority sale keeps control with the government.

2.  
The rupee price of a dollar rises by 25% and then by 8%. The total appreciation of the dollar is:

Correct Answer: B [35%]

Explanation:

1.25 × 1.08 = 1.35 → 35% (25 + 8 + 25 × 8/100).

3.  
A CPSE has 400 crore shares. The government sells 5% at ₹ 300 a share. It receives:

Correct Answer: A [₹ 6,000 crore]

Explanation:

20 crore shares × ₹ 300 = ₹ 6,000 crore.

4.  
Two-quantity comparisonTwo-quantity comparison (rupee goes from ₹ 50 to ₹ 60 per dollar):
Quantity I: % appreciation of the dollar
Quantity II: % depreciation of the rupee

Correct Answer: A [Quantity I > Quantity II]

Explanation:

Dollar +20%; rupee −16.7% – the change looks bigger on the smaller base.

5.  
Odd pairWhich pair is NOT correctly matched?

Correct Answer: B [Chelliah Committee – insurance]

Explanation:

Chelliah dealt with tax reform.

6.  
Spot My Mistake“Government held 60%, sold 12%, so it now holds 48% and the firm is still a government company.” The error is:

Correct Answer: D [60 − 12 = 48% is below 51%, so it is no longer a government company]

Explanation:

Answer: 60 − 12 = 48% is below 51%, so it is no longer a government company. 48 < 51.

7.  
Assertion–Reason
A: India pledged gold in 1991.
R: Forex reserves had fallen to a very low level.

Correct Answer: C [Both A and R are true and R explains A]

Explanation:

Gold was pledged to raise foreign exchange.

8.  
Which criticism of the reforms is stressed by NCERT?

Correct Answer: C [Neglect of agriculture and jobless growth]

Explanation:

Services and reserves grew; agriculture and jobs lagged.

9.  
Statement-basedStatement-based (PIB explainer, 30 December 2025): Which is/are correct?
I. The Viksit Bharat – G RAM G Act, 2025 guarantees 125 days of work per rural household.
II. The Income-tax Act, 2025 uses a single 'Tax Year'.

Correct Answer: B [Both I and II]

Explanation:

Both are in the PIB explainer.

10.  
The four Labour Codes rationalised how many existing labour laws (PIB, 21 November 2025)?

Correct Answer: D [29]

Explanation:

Answer: 29. 29 laws into 4 codes.

11.  
Which of the following is NOT one of the four Labour Codes?

Correct Answer: A [Code on Minimum Support Price]

Explanation:

The fourth is the Occupational Safety, Health and Working Conditions Code.

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Indian Economy book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-indian-economy

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