Free Test Privatization – Civil S...

Q1: What does privatization refer to in economic reforms?

A. Transfer of ownership from private to public sector B. Transfer of ownership from public to private sector C. Increasing government control over industries D. Reducing foreign investment

Q2: Which government body in India is primarily responsible for disinvestment?

A. Finance Ministry B. Planning Commission C. Department of Disinvestment D. NITI Aayog

Q3: What is a key objective of privatization?

A. Increase government revenue B. Reduce efficiency of enterprises C. Promote monopolies D. Decrease foreign investments

Q4: Which of the following is a method of privatization?

A. Nationalization B. Disinvestment C. Licensing D. Subsidization

Q5: Which sector was most affected by privatization in India?

A. Agriculture B. Public sector enterprises C. Small scale industries D. Banking sector only

Q6: Privatization in India gained momentum after which year?

A. 1985 B. 1991 C. 2000 D. 2010

Q7: What is the difference between disinvestment and privatization?

A. Disinvestment is complete sale, privatization is partial B. Disinvestment is partial sale, privatization is transfer of control C. They are synonyms D. Disinvestment involves buying shares

Q8: Which committee recommended the privatization of sick public sector units?

A. Narashimham Committee B. Kelkar Committee C. Sarkar Committee D. Narasimham Committee

Q9: Which of the following is NOT a benefit of privatization?

A. Increased efficiency B. Improved service quality C. Reduction in government expenditure D. Increased government control

Q10: Which sector saw major privatization through sale of shares?

A. Telecommunications B. Agriculture C. Education D. Defence

Q11: What is "Strategic Disinvestment"?

A. Selling government shares to foreign companies B. Complete transfer of ownership and management control to private firms C. Partial sale of shares without control transfer D. Government buying back shares

Q12: Which of these companies was privatized through strategic disinvestment?

A. Bharat Heavy Electricals Limited (BHEL) B. Maruti Udyog C. Indian Railways D. ONGC

Q13: Privatization may lead to which of the following concerns?

A. Monopolies B. Reduced innovation C. Increased bureaucracy D. Lower profits

Q14: Which Indian Finance Minister aggressively promoted privatization in early 2000s?

A. Manmohan Singh B. P. Chidambaram C. Arun Jaitley D. Yashwant Sinha

Q15: What is the role of the Stock Market in privatization?

A. Government sells shares to public through stock market B. Government buys shares from public C. No role D. Only international investors participate

Q16: Which act provides the legal framework for privatization of Public Sector Units?

A. Companies Act 2013 B. Industrial Disputes Act C. Companies Act 1956 D. None specifically

Q17: Privatization leads to:

A. Improved efficiency and productivity B. Decreased competition C. Government monopoly D. Increased subsidies

Q18: Which of the following is NOT an argument in favor of privatization?

A. Better allocation of resources B. Reduced fiscal burden on government C. Increased political interference D. Improved managerial efficiency

Q19: Which state-owned company was the first to be privatized in India?

A. Maruti Udyog B. Air India C. Bharat Aluminium Company D. ONGC

Q20: Privatization policy is part of:

A. Industrial Policy 1991 B. Monetary Policy C. Fiscal Policy D. Agriculture Policy

Quiz for Privatization