Question : Which of the following is not the economic reforms taken by the government under liberalisation?
Option 1: Foreign exchange reforms
Option 2: Land reforms
Option 3: Trade and Investment policy reforms
Option 4: All of the above are taken by government.
Correct Answer: Land reforms
Solution : The economic reforms taken by government under liberalisation involves-
Hence, Option B is correct.
Option 1: Industrial reforms
Option 2: Agricultural reforms
Option 3: Tax reforms
Question : The real exchange rate is important for:
Option 1: International trade.
Option 2: Domestic monetary policy.
Option 3: Foreign direct investment.
Option 4: All of the above.
Question : Which of the following are the parts of structural reform measure of new economic policy?
Option 1: Controlling inflation by keeping the rising prices under control.
Option 2: Improving efficiency of the economy.
Option 3: Controlling weaknesses of the balance of payments by maintaining sufficient foreign exchange reserves.
Question : It is determined by forces of demand and supply.
Option 1: Foreign exchange
Option 2: Foreign exchange market
Option 3: Foreign exchange rate
Option 4: None of the above.
Question : Which of the following steps should taken by the central bank if there is excessive rise in the foreign exchange rate?
Option 1: Supply foreign exchange from its stock
Option 2: Demand more of other foreign exchange
Option 3: Not intervene in the market as exchange rate is determined by the market forces
Option 4: Help central government to stabilize foreign exchange rate
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