Free Test Liberalization – Civil S...

Q1: In which year did India officially start economic liberalization?

A. 1985 B. 1991 C. 1997 D. 2000

Q2: Who was the Finance Minister who initiated major reforms in 1991?

A. P. Chidambaram B. Manmohan Singh C. Arun Jaitley D. Pranab Mukherjee

Q3: Liberalization in India primarily aimed to:

A. Increase government control B. Promote state ownership C. Reduce government controls and promote private enterprise D. Close the economy

Q4: Which of the following was a key feature of liberalization?

A. Protectionism B. Quota system C. Deregulation of industries D. Nationalization

Q5: What was the impact of economic liberalization on Foreign Direct Investment (FDI)?

A. FDI was banned B. FDI was encouraged C. FDI was unchanged D. FDI was taxed heavily

Q6: Which organization’s bailout was linked to India’s 1991 economic reforms?

A. IMF B. World Bank C. WTO D. UN

Q7: Which sector saw significant deregulation after 1991?

A. Agriculture B. Heavy industries C. Small scale industries D. Service sector

Q8: Liberalization reduced:

A. Trade barriers B. Exports C. FDI D. Market competition

Q9: Which plan first incorporated liberalization?

A. Eighth Plan B. Ninth Plan C. Tenth Plan D. Eleventh Plan

Q10: Economic reforms in 1991 led to:

A. Greater government spending B. More subsidies C. Market-oriented economy D. Complete privatization

Q11: Which sector was gradually opened to private and foreign investment post-liberalization?

A. Defense B. Railways C. Information Technology D. Agriculture

Q12: What is "disinvestment" in the context of liberalization?

A. Increasing subsidies B. Government selling its stake in public enterprises C. Nationalizing private firms D. Increasing tariffs

Q13: Which of the following is NOT a characteristic of liberalization?

A. Reducing industrial licensing B. Encouraging monopolies C. Allowing free entry of private firms D. Reducing import tariffs

Q14: Liberalization aimed to improve:

A. Fiscal deficit B. Economic growth and efficiency C. Bureaucratic control D. Corruption

Q15: Which committee recommended reforms in public sector enterprises?

A. Narashimham Committee B. Rangarajan Committee C. Kelkar Committee D. Sachar Committee

Q16: Which of these reforms was NOT part of the 1991 liberalization?

A. Reduction in import tariffs B. Devaluation of Indian Rupee C. Introduction of License Raj D. Deregulation of industries

Q17: Economic liberalization affected the role of government by:

A. Increasing its role B. Reducing its role in economic activities C. Making it the sole economic actor D. Nationalizing more industries

Q18: Post liberalization, the Indian economy is described as:

A. Closed economy B. Mixed economy C. Command economy D. Subsistence economy

Q19: Which sector’s growth was catalyzed by liberalization policies?

A. Heavy manufacturing B. Agriculture C. IT and Services D. Mining

Q20: Which of the following is a challenge posed by liberalization?

A. Reduced foreign investment B. Increased competition for domestic firms C. Decrease in exports D. Increased government control

Quiz for Liberalization