Question : Which of the following policy measures is a step towards liberalisation?
Option 1: Enhancing tariffs
Option 2: Eliminating licenses for importing a majority of goods
Option 3: Imposing limits on capital accumulation
Option 4: Increasing requirements for bank reserves and restrictions on interest rates
Correct Answer: Eliminating licenses for importing a majority of goods
Solution : The correct answer is Eliminating licences for importing a majority of goods.
Liberalisation Is typically used in the context of a government relaxing its previously imposed restrictions on economic or social policies. Eliminating licences for importing a majority of goods is one of the steps towards liberalisation, and the essential feature of liberalisation is relaxing the approval of FDI in various sectors.
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