Question : What was the main objective of financial sector reforms in the 1991 economic policy?
Option 1: Encouraging foreign direct investment (FDI)
Option 2: Strengthening the banking sector
Option 3: Promoting rural credit
Option 4: Controlling inflation
Correct Answer: Strengthening the banking sector
Solution : The correct answer is (b) Strengthening the banking sector.
The financial sector reforms in 1991 aimed to address the weaknesses and inefficiencies in the banking sector, which included the nationalization of banks and extensive government control. The reforms focused on liberalizing and deregulating the banking sector to encourage competition, improve efficiency, and strengthen the overall financial system. These measures included introducing prudential norms, enhancing transparency and disclosure requirements, encouraging the entry of private and foreign banks, and promoting the development of capital markets.
Question : The 1991 economic policy allowed for automatic approval of foreign direct investment (FDI) in which sector?
Option 1: Banking
Option 2: Agriculture
Option 3: Telecommunications
Option 4: Defense
Question : What was the main objective of industrial sector reforms in the 1991 economic policy?
Option 1: Promoting export-oriented industries
Option 2: Nationalizing key industries
Option 3: Encouraging small-scale industries
Option 4: Protecting domestic industries from foreign competition
Question : Which industry was delicensed and allowed for automatic approval of foreign direct investment (FDI) in the 1991 economic policy?
Option 1: Telecom
Option 2: Aviation
Option 3: Banking
Option 4: Information technology
Question : Which sector witnessed the largest inflow of foreign direct investment (FDI) after the 1991 economic policy?
Option 1: Manufacturing
Option 3: Services
Option 4: Infrastructure
Question : The 1991 economic policy in India aimed to address:
Option 1: Increasing government control in the economy
Option 2: High inflation and fiscal deficit
Option 3: Excessive privatization of public enterprises
Option 4: Declining foreign direct investment (FDI)
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