Ob·

J}ective Questions
Multiple Choice Questions
1. . ...... are sho rt-term polic
taken lo improve the Bo P sf m ~asu ~es Column A Colu.mn B
rm econ o m y. tuatao n 10
B. D_ev_aluati_o_n_-"{u2·)_T:...:an
::.:·ff and quota
(al Structural measures C . Depredation (iii) Selling part of
(bl Stabilisation measures equity of PSEs lo
tel Reconstruct ion measure s the public
(d) Developmental measures D. Disinvestmeo1 (iv} Del.iberate
dow11ward
2. ......... was the Indian f ,·nan M· . adjustment of
·I.fl 199 1, ac kn owledged for· bisce master d omestic currencv
capabilities
. .Lo steer away the eco no m .,c wic.h respect 10 •
1
cn s~s oommg 1arge on the erstwhile foreign currencies
Indian Econom y. (CBS£ SQP 2020-21)
Codes
(a) Dr. Subramanian Swamy
A B C D
(b) Dr. Manmohan Singh
(al (iiill il Ovl Oil
(cl Pranab Mukherjee (bl (iil (ii (iii) (Iv )
(d) Or. Urjlt Patel (c) (ii) (iv) (I) (Hi)
3. Q uantitative restrictions are those trade (d) Iii ) (iii) (1) tiv)
barrie rs w hich increases the prices of
6. Selecl lhe correcl combination b etween
imported g o ods. T he give n stateme nt i s
th e follo win g columns.
(a) True
(bl False Column A Column 8
(c) Partially true A. Licensing on (i) Stabilisation
(d) Can't say. t here nature varies rrom time-to pro du ction measures
l ime capacities
4. ....... .. regulates the fin anciaJ m arkets B. Correcting the BoP (ii) Glob alisation
in conte x t of [ ndia. situation and
(a) Securities and Exchange Board of India bringing inflation
under COl)trol.
(SEBll -- -
(b) Reserve Bank of India (RBI) C. Increasing (iii) MRTP A.cl ,
(c) Compet ition Commission of India (CCII efficiency and 1969
(d) Federat ion of Indian Chambers of inlemati~ nal
Commerce and lndustry (FICCI I com petitiveness
5. Select the correct combination between D . In tegrati ng national (iv) Structural
economy with the m easu res
the fo llo wing columns.
world economy
Column A -· -_
co,~ B-
· ---- --~ - - (')
I
Reduction in the Codes
A. T rad e barners vaJue o f do m estic
A B C D
currency in (al (ii) (i ) (iv) (iii)
comparison to .
foreign currencies !bl (iiil(ivl (1) (ii)
a., a result of (cl (iv)(i) (iii) (i ii )
marke t forces Id) (til {iii ) (1) (1v)
 CBSE New Pattern ~ Econo .
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8- - - - - - - - -- - - - - - - - -- ----...:.:.~ntics Xll fr
~
7. Stabilisation measures are _lo og-tenn
meru.-un-s which inlenci to improve the
12. Policy concerning governm ,
and public expenditure are entl l.titauh,
-
Cl

e fficiency of an economy and increase kn own as co lec1·ivelyi

its international compe titiveness. T 11e (a) Fiscal policy (b) Monet
gn-en statement is (cl Stabilisation policy (d) Structy PoNr.y
tal True uraIp011 1:J
(b) False 13. .. ... .... is a trade barrier wL'ch
•u rnak
(c) Partially true imported goods costlier and thu I:\
(d l Can·1 say restricts trade. s
(a) Tari ff (bl Quota
8. The trade policy reforms introduced in (c) Export Duty (d) None of th ese
1991 aimed at
la) dismantling of quantitative restrictions on 14. The ma.in reason for reduction in la)(
imports and exports and simplification of tax procedure es
lb ) red uction of tariff rates since 1991 is
(cl removal of licensing procedures for imports (a) high tax rates act as a deterrent to savings
(di All of the above and is a major reason tor tax evasion
(bl income of the people post 1991 have fallen
9. The policy measure(s) taken to induce continuously and so does the tax rates
the spirit of privatisation during the (c) high tax rat es imply higher disposable
reform period was/ were income and thu s lower level of
{a) Contraction in the role of public sector consumption
(bl Policy of disinvestment was followed (d) Alf of t he above
kl Both tal and (b)
(dl None of the above 15. The major reason for simplification of
tax procedure post 1991 is
10. Which of the following industry is n o t (a) to avoid the cascading efl ects of taxation
reserved for the public sector in India? (bl to encourage betler compliance on part ol
(ai Railways the t axpayers
(bl Atomic energy generation (c) to rationalise the tax structure and
(cl Chemicals computing taxes with more clarity
(d ) Defence equipments (d) All of the above

11. Which of the following is incorrect with
regard to the financial sector reforms
taken under the purview of new
economic policy, 1991 ?
(al Role of RBI shift ed from regulator to
fa cili tator of f inancial inst itut ions.
(bl Foreign investment limit in banks was
raised to around 70 percen t.
(cl Foreign Institutional Investors (Flis) are
now allowed to invest in Indian financi al
markets.
(d) Banks can set up new branches without the
approval of RBI provided they fulf il certain
conditions
16. Which of the following explains the way
for a government company to go private?
(a) Withdrawal of the government fro m
ownership and management of public
sect or companies
(bl Outright sale of public sec tor companies
(c) Both(al and (b)
(d) None of the above
17. Whi~ of the following does not
constitute the special status as granted
to Central Public Sector Enterprises in
context of India?
la) Newratnas
(bl Maharatnas
(cl Navratnas
(d) Miniratnas
 79
18. India n Oil Corp orati on l.imi
been gran ted the s•~... led bas Codes
"'"-U S of
(al Newr atnas ( b1 A B C 0
le) Navr atnas ( Maharatna s lal livHiii ) (iii 111 A. B C o
d) Hinir atnas lcl (iiilliv l n
1 11
II lbl (1111 ltvl \u\ 1,1
Id) (tvl liiil Iii lnl
19, Which of the followin
been gran ted the stat ! ~~not 23. facil
. . it2tin
- a
great .
er mtegration and
(al Bhar at Sanc har N,qam L. . tnas? mte r~ep ende ncc in markets and
. 1m1ted
lbl A1r~or t Auth ori ty of India allo wmg for activ ities that trans c.end s
(cl India n Railw ay Ca terin and econ omic, social and geographical
Corp orati on limit ed g Touri sm boun daries is know n as
Id) St eel Auth ority of lnd,a Limit ed lal L,beralisatlon lbl Prtv1111sa11on
(cl Globalisauon (di None ot these
20. Whi ch or· the• following .l5 not true
abo ut 24. The r easo n that has lead India as a
econ om,c cn sis of lndi a in 199<>' ~aja r desti natio n for global omso urciu g
(a) India was hl ghly Indeb ted c . IS
t 10,00 0 crore as int ere st P~~ :;/ay (al restn cuons from the government
(bl For ei .gn exch ange r eserv es sho d lb) ava1la b11lty of skilled and cheap lat>01Jr
we a
marg inal rise owing to polici es betwe en tel ava1lab1hty ot cheap labOu r with sk1\l- qap
1950 t o 1990 Id) .iva1lab1hty ot large number ot consumer
(cl Inflat ion rat e w as very high at IS.So/. pc, and capita l goods industry
annu m
(di BoP was in defic it of , 30.000 crore 25. Voice-based business proceSlle:S are also
rdcr red lO .u BPO (Business Process
21. Stra tegic sale implies selling up or Outs 0u.rc in g) or Call centres. The given
majo r prop ortio n of equi ty (.51Clfo o r state ment is
m ore) or PSE s to the priva te secto r. The la) I rue
give n statemen t is (bl raise
(al True lb) ~2lse (cl Par11ally true
(di Par1ialty false (di Pam alty lalse
(cl Part lally t rue

22. Sele ct the correct com bina tion between 26. World Trade Orga nisat ion {WTO) was
establish~ in 1995 as a succ essor 10
the follo wing colu mn~.:. World Bank. The given state men t is
Cohunll A Column B tal I rue (bl False
A. Disinvestm ent (cl Part ially true Id) Partially f alse
(i) Trad e between two
countries
- - rity sale
B. Mino (ii) Trad e between
27. WTO was established in \995 as a
succ essor to . . . . . . . . . . Cc:8S£ 2112D)
more than two
(al General Agr eeme nt on rrade and Taoff
countrieS
(GATT)
C Bilateral ir:ie ( iii) To~ g a.bout (bl General Agree ment on Tra<le and
· financial discip line
and modernisation
1rans forma 11on\G A I n
(c) Gene ral Aqr eemi> nl on Tantl and

D. Multilateral
-- -- ---
ofJ'S Us
-
of the equity of
-
(iv) Sale of 49'\b or less
Tr ansf orll'<! t ,on ( GA TT l
(dl General Agree ment on -a· '1 ano ·ra-,e
(GATTI
trade yu s__ -
140_ __ _ __ _ __ __ _ __ _ _ __ __ _ _ _ __
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33 • ·1·1I (' p us11tvc

. . ·impac t o f I.Pc ~
..
28. l ; \IT ".,~ n 1,ll1lbl11·d
, 0\11111 ll'J: .,s
_wl t~I
111 . . ... , . , .
II 1rndi11~ o r xn111:-tilllllll cc,nlcxl o f I ndian cconumy ir~;c,. ,,,.
(a l a I lse In fore1 9n oxc.hanqc, ,,... e
1,, .,d nln\li.li'I ~l, 1bnl trndc ngr<'t' llll'llls.
(t, ) 191,t:l, 2J S 6 billi on in 1990-91 to abou·,'~~~-.ir,,,.
,~• ' 1~l t,l) ti • billi on in 2013- IL._ • ~ lo~ ·
·I •~)i;~ l,\\l (d) 199!:i. 130
(b l a ri se In for ei gn Investment fr om U• ,.
29. l'h<· mnJnr n•nson for joining a~1d million In 1990- 9 1 to US s 467 bitll ~" •~-
2012 -13 On 1~'
bt•C"oming n m,•n,b1•r o f VlTO 1s/are
1.i 1 1ln1 ,,q, ,It tnl.J domes I ic rconomy wit h th e (cl a r ise In lhe rat e of economic grov th
1, (irld ec,rnr,rny 6.6% in 1991 to 8.2% by the end of ; ~o,
01
(d) All of the above
11,1 ort>.HN mari,r l access to all neighbouring
count ries 34. The negative impact of LPG p olici .
(rl .illnwlng trade res I nr tlve pollc,es among context of Indian economy is/are es 10
1he m ember 11a11ons
(a ) Productivity in the agriculture sector has
Id) Both (a) and (bl declined as it r emained neglected
30. Tradl' betwee n m o re than two countries (bl Productivit y in the serv ice sector has
is known as .... .. ... . incr ease d due to increa sed focus
(c ) Dwindling of the GDP growth rate
(al Un,1a1 eral 1rade (b) Bilateral trad e
(d) Consumer's sovereignty has widened
l e) Mu1t 11a1eral tra de (d) None of these

31. Select the correct combination between

35. Foreign Direc t Investment (FDI) does
not include ... . ..... .
the fo llo wi ng columns.
(al Inves tm ent in s tock markets
Column A Column B (b) inves tm ent in domesti c inf rastructure
A . Bilateml (i) Make imports (c) investment in settin g up of capital goods
trade relat~vel}.: costlier indus try
B. Unilateral (ii) Trade between two (d) All of th e above
trade countries 36. Arrange the following in chronological
C. Tariff (iii) Ba rriers Imposed on o rder in context o f India n economy.
barriers the quantity of (i) Monopolies and Restrictive Trade
imports and ~ orts Practices Act
D. Non-Lari ff (iv) One-sided, (ii) Competition Commission
barrier~ non-reciprocal trade
preferences o ften
(iii) New Economic Reforms
granled by (iv) Goods and Services lax
developed E_Ountries Choose the correct alternative.
(a) (iii), (ii), (i), (iv) (b) (i), (iii), (ii), (iv)
Codes (c ) Ii). (iii), (iv), (ii) (d) (i), (iii), (ii), (iv)
A B C D A B C D
(a) (Iv) (11) (i) (iii) (b) (ii) (iv) (I) (iii)
37. Which of the given pair is incorrectly
m atched ?
(c ) 11[) (Iv) (iii) (I} Id ) (1v) (11) (Iii) (l) - - --
_ ___;:
Column A Column B
32. G rowth during the reform period was
ma inly driven by the growth o f which A. Strategic (i) Sale o f 5 10/o or more
panicular sector ? saJe equity_of Lhe pS~
(al Agricuilural sec tor B. Minority (ii) Sale of 49% or less
(bl Manu fact uring sec10, _ _sale _ _ egu~ of the pSUs ~
(c ) Ser vice sec to1 C. _Quola_ (iii) Trade Promoter
(d) All seccors c onl nbut ed equally to qrowl h D. Foreign - (iv) FDI + FU- - - -
- _Investment
CBS£
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Code s
(ell :.-(ti fl> ) l:s ·(u) 43. The refonn m oo.sure , that were take11
(cl C -1111) (d) o _hv) rn order lo boubl the growth or
manuf acturin g scc10 1 wiu/ wNc
38. Availa bilily of cheap labou r and (a ) impor l lrc<-n ""Q m1s aoo11;hed e~cer t
rca~on able degre e o f skills among the cace of haziudo ob and r11v Ironmer11a11,
Indian w_o rkforc e makes il a favourable sen~111ve rncJustr,e~.
outsou rcing destination T he . 11>1 quantll at ,r•r< •r ~•.., ,#,;,1111npo1t ,rt
stalem cnl is · given manul; i,.tur,• J ,,onsu111l-'r gnorl•, dllO
(al True agrlr 11tw11 r,rr r1url 1,r>rr> r<'rnrwrd ,,, rr
lb) ra1c;e
?001
(cl Partial ly true Id) Partially t RISI'
le) 10 ,nr.rl'<lS" 111,-. comnl'11 11vPnl' •, ol lntl1,1n
oro<1urt<; "'POrT dut,,... ha•,., bl'N1 remov" rl
39. The latest dcmo netisa lion uf curren cy Id) All r11 thl: ab11•·
was under taken b)' the Govc.• 111mcnl of
India on .. ·.. .... . (CRSC SQP 2019-20) Assertion-Reasoning MCOs
al 6th Novem be r, 7016 44. Assertion A 1 There was a i.ign1fi ca111
I

(bl 8th Nove mbrr 2017 need lo 1ntrod11ce a policy measu re

(cl 6th No , e mb t>r 2016 \\ h1ch could 1mpro\"c the efficicnn and
(d) 8th Novem ber. 201& prudu<.11v11y in .in econo my.
40. lndust rialisa lion in India has record ed a Reason (R) /\) a result , LPG model n l
slowdown in I hc perw d of 1•cono1111c grO\~lh was w troduc cd in l!J!IJ which
re form s. What is/ an' th1:: n:a,o n(s) for provid ed a :.1iur1 uraJ ~hifl in the pu ltl }
this? prrspe ctiv<.' of I nd ian l'Con<> lll),
Altern atives
la) The deman d for d om es I ,c ,ndust r,a1
(d) 8011 /1,~.-rt ,, 11'.Jan I R"'ac;on (Rlarr• 1,,, ..
produc ts is decr easrnQ and ?P:isor IQI,,. the corrPCI n plana• r t
(bl Globahsat ron l\s<;eo r,nn •/,
(cl India does not havP ,,,~,·£-,•. ,,., rltftNP n 1 (ti) B011 l\.,~.,rt ,.,.,., Jncl ri.,asnn lflJ,,r,.. 1,.,,..
market s becaus e of h1qh r ) rt wrir t oni ,.,,,,, bul P<> i ,;or (Pl s nol thP r.o rrf-rt
Id! All of the aoove e~of:ina r '"' ' /,~ .. ,.,, fJn(.111
1
I A,;!;rrtlo nl/11 rruP t,J r Re;i-;on!RJ•~ ·J ~•·
41 . Which of the following i te m s h1L~ been r 11 P r 1-;nn(P ),
1rnd (di Asc:<>rt1rfl(ll\1• t J'•r •1
kept outside the purview of Goods
Services Tax (GSTJ? 45. Assertion I A I b ery )l'ar gme,n mc·nt
!al Electrlc11 y, Autom ot, lles anrl fol ec omm fixes u targe1· lor disill\' CStmcn t of
un1cdl1ons Public Sector Enterp n~es (PSEs).
lb) [lec t11 c11y, fl111om on 11t·~ and /\lcohOI for Reason (R) Dismvestmrnt is an C'Xrt•lll•nt
hum.:i11 co n surnpt 1on 10 0! fur cli~card 111g th C' loss incurri ng
_ r , .• ::,, 0 •u1.. • ;u1d Alcoho l
I CI El tLIII< II V, I 1 l · Public Sector En1erp rise:. (P!>Es).
f or human co n::.un pt,~n
Altern atives (CBSC SQP 2020-Z IJ
ldl E1ec. 11,c ity r e1t,com mur,ca 1,on<- and
.llcoho l for hum;,r Ct'l<;1. norion
ano 1, -"asor
42. Which of the give n hits been . taxe s As;;r,n,or ' i.l
( , d s and Servic es tr .,r.
sub;)un wd under the ,oo · . dJ fb) B:>t"' t.. 3~~ · -.- (! an·, ::c.-;;:.r;f'1 tf. :=.t#c..

Ta.x ,G ST )? (CBS£ SQP :!0/ 9-20, Modifie butPea so-rc- "Ollr., c,;·•- ·
e•olar.a1 ::,, , · ·.ssen J'' It,!
.,, Lm. ,·, ta, ::iea- • p - "
(cl l~S,-''" -- l r ·-~<- • •
b~ ~ nX(':, en aov'?r;, serr .or~s:
d PI h.:JS" r;1 ,
(dJ ~ ,~ • • hP JC•O•-'

82
46.. Aaertioa (A ) There bas been a.
structmal shift in lhe rote of die RBI
from regulator to fa.cilit3tor of the
financial sector_
RealOI'\ (R) financial sector bas ro
consult RB l before taking any decision.
Alternatives
(al Both ~1on(Alan.d Reasmn(R):are true
and Reason (R) 1s the correct explanation of
Assertior (A)
(b) Both AsserJ cn (A) a.nd Reason tR )are true
1 measme no ll'esol-..-e !!he financial oi:sis,
but Reason (Rl is not the C!:on:-ect
~ anac,on of Assertici n IA)
( c) Assertfon {A) IS true. btlt Reasarn (1R)!is false
(d) Assen:ion (A) 1s false. but Rea.sen (R) is true
47. An r roon. (A ) Selling or part of an
equity of the PSE.s is, called
di:sinvesnneoL
Reuon (R) The main reason for
disinvestment is to keep all the
opetati.o nal unit5 of the cot111try under
the private sectoL
~ •temati:ves
(a) Both Assertion IA) a/Jld Reascin ~IR') are true
and Reason ( R)is thecor~ec:t! explanatJen of
Assertion (Al
(bl Botn Asseruon(A)1a.nd Reasmn (R) are true,
but Reason(Rlis not the conrte.€t
explana11on of AssertlOlil (A)
(cl Assertion (Al 1s true. lilut Reasmm ~RJ 1s false
Id) AsseruontA)isfalse bu~ Reasan lR1 1s true
4& Asaerl:io-a (A) In ordff to manage the
cmis, lndia approached IMF and
World Bank which granted $7 Billion a.s
a loan.
Reaaon (R) forrign exchangP. reserves
declined to its loWHt level with a
re luctance &om otheT counuie3 to lend
to lndia.
CBS£ New Paal!Tll - & Obuwb .tua9-•
AttemaliVes
(a l Both Asselltion (Al and Reasan(RJar:>o-.f
amd Reason (•Rl 1s the correct e.,,.plaria.'Ci ~
Assertion (Al •
(b ) Both Assertuon (A l and Peason (P) are tr-o.E
out ReasCJn (Rl is nae Che-corre,:c
explanatrfol'l crf Assertfon (Al
(cJ Assertion ( Al 1s rn:ie but Peascf"{Pl'is fas.:
(d ) Assertion ( Al 1s faJse. but Reasor 1'0 trs tr..e
49.. Aalertion ~A ) As an ~
India deval'ued it5" cmrencv , in 1991.
Reason (R) This a&wed India ro mffl
its import bil!JI .md resoh-e the BoP
deficit.
Alternatives
(a) Both Assertion(A) and Peason (Pl a?tr.J?
and Reesl:ln ( R) is th e correct eii;,lerrao~ ='
Asserc-ion (Al
lln) Both Assertion (A) and Reasor (Pl ~ tr•..l'!
but Reason IRl 1s nor me cor-ec-
e:xplanat ,on of Asserr en (.l
tel Assertiol"I (Al is true. true Reasor: 1RJ1s tal52
(ci) i\.ssert1on ( ~)' i5 false l!lut Reascn C>(t ,s -_e
50. Auenion (A} Se:Ilmg off part of the
equily of PSUs to me public is ca.Ired
dismvestm>enlL
Ru..,. CR) Dmn-veffiltelli r.aifeS
resf>tm:es fm- U'Jle budget m o_r-da_lO
reduce lhe fldcaJ] deficil and ~
funds, foir moo_'e:nri3ation oli" pSu.
Alternatives
la) 8-oth Assertion I C. Jara P.e.:isonl;;i ~--:"'
and Reason (RJ , s rhe correcr ell~.;r_ G
Assertion (A ) _e
(bl Botl<i A:sseruon 1.\Jana 0 2cason' ;:pri> rr
llut Reason (R I,:; no, •~e ccm'" .::·
explanation c ' AsSJ:!rr·cr(.l) •~ •
IC) A.sseni1on (AJ 1s true tur Reasor1R -s ~
A- • ' l ~ j;!,' _t
ld'l ....,,serr1on (,AJ 1s raise ou: ~.a!'O•
(1l5f. ~ PmUrn - Ecot.»Jlics XJJ CTam I)
83

51. A,,aertion (A) Auiculwre seaor (a I A IIIQh level of frsca, defICl1

experienced an mcrease in growth (bJ mflauonary pressures
during lihe reform period. (cl PerslSte."'Q le-.-e1c' unenplo'),ne"'· a~::
~'I
Reapwa (R!) Decline in public (d) Depletion of tr>e !:)le-;c" i?Uha'ige •ese· .~·
irrrestmem and ~ of fertiliser
subsidy adversely affedoo Uff' stab>s of 53. The new ecooomic policy of 1991 in
agnGJilim:ic. OODP"Yl I){ Indian eWD01IJ)' implies
la l !berating r:adE ar.d nOJSlr, h r co~ ·o,-;
~ aNI res-1 r clions
!al ~o1Jm,Asse:nlllon lA) amd fR.eason (RI are true (bl greater ro•e of prrv21£ sec:o, "' ·:,e
and Reason lR) 1, ~he correct eYplanat1on o' tuncuon,-iq of .n c-cooc-,
Ass~rtlon lA) (::I ••,nq f·:;.r -OS'='j ec"?;.;:.-, :":. 4,-. ~4?r
SJ"'
lbl Bot h Asseruon!Aland Peason (r.)are tr>JP !?":0"1'.)'...t ~ ?O~
oul Reason IR} ,s not I he ~orrr,c1 1:, L. -~ 1-i,p d-0=•?

explanation o f Asser tion (A)

le) Assert,1on(Al 1s true bul Reai.on(P)1s lalSe
54. The oilier name of \.Vorid Bank ls ..

fol Assertion l Al 1s ralse. but P.eason IF l 1,; • •u" al ,... ~ - !!'O Ba-•~· c"C"- ·~.,c- c- z;--:
Oe.-orrne...YI~
bl n• -- a ea,," 'o- Per.r ~•ce ar.c
:-ie-· aPr,
Direction R«Jd ,t he {oUoJDWI: COM study ; '-• er,az,o,a ~••o:-Pe::cns1 --'.:"~it'"C
and ,an.swer ith.e gi.t.ie_n qiua/io ris no. 52-56. D e ~ • I BR~
1a 1 ...ieqra; i: d Ba- - 1 -' ;, e-;.x. •:e am:
lD ithe la:1.e J9&(l)s., governm ent expenditure Je,e ::::~e-: 3:;:
began to exceed its -revenue by ~ch large
. the ..vn1>,n diture through 55. [MF and v.·orld Bank granted $ 7 billion
margins that m eeung --r- p . r loan Lo India ,..-jth a major restncuon to
. b e ~ un,susiaio ahle. n ces o
b orrowmgs . ha 1, lrnpons follow a dosed economv , model The
manv essential good s rose s .rp ) · • given statement ~
, ·, ,.,.,; 1,o ut m.itch1ng
OTew at a vef)' h1g h rate 1
o· F . e." cbange rescn,es (a) .. -~e : ~; ~e
grow1h of exparts- oreigTl adequate 10 1c, Pa-: :1 , •• Je
declined to a level that was BOI _ _ i.... I:i Sar : sa;· true' e we-e -- suc-
arts for more th.an !WO Wet::A"·
_...__
c___ • co'\d t ,r -,a• · "'5
lllliillce anp safficienl (areign excuouge
There """-as aiso n ot needs to be paid to 56. The maJor conditio nalitie, p ul fon. ard
lO pay the inJ;ere!>'t tha\ • o country or by UiF and \\"odd Bank before
. . - - ~' lenders· r,..so n __ ..1 • - ~ - granting $7 biJlion loan to lodta " e re
mternatlOIUJ.1 . willing 10 leuu to LOUJA-
intem ational fua,der ""~\forld Bank aad the i Removal of trad~ barrien ben. ttn
India approached the (IMFl and India and other councnes
lnternatiaoB,l ,M ~.fu:od ~ the crisis. ltL Removal or the restrictioru fJTl the
rt'Ceivecl $7 billioO u ~~lit:ie:S cf \\odd private senor
lndm agreed it0 the ~clle New iii Focus ~n de,-eiopmem by ~ ure
Bank and 11.ff aod a o n ~~ · set of policy of envu,oomen,. -
£.couorm:c · Po'L,~.,. ,,~ ~ oi
n.i£.PI.
0
~ · . our iv Llber.uing ~ ilDd mdustry from
~~
.....es'""'
tDcaSW- UIJWa:med gt» ti Ii I I +:w corurol and
• .,.., .. r.m !l]t>, ~6 is joCOrn:O
:i -,a,o,~,
restriaioos
- J me P-e:n ~ · of
cno r ~,
lz. I ano
52.. \\'l'bi,c:h
-
,-A.
~
·
w . •
. ~ s n I;,';:;,
"°'
die in~ _ ...- ,
111 UJU&a-
= 1 ( .Jl Iv ?°'C •

~
84 CBSE N ew Patter n ,., Cconomlts Xlt 11
rr
erm IJ

(cl Pushing a na tion to ward!'. d1g11a1i~0 , ,,

Direc tion Read the follow ing case study
(d) All of lhe dbove
1111cl 011:-we r th e questi ons 11 0 . .57 to 61 .
O n ~lh No"<'m ber. ~W lti. th e Prim e Ministe r 59. D e m o n e tis atio n o f curren cy bills in
o f India, Nare ndra Mo d i, took the n atio n b) 20 16 has b een the first ep isod e of
surpris t' b y anno un r ing Lha1 lhf' govern me nt d em o n e tisa lion in c onle xt o f Indian
was df"m on etismg ctm·enc y with denom ination s econom y. The given s tate me nt is
of SOO o r I .000 rupees . with immed iate effect. (a) True (b) False
This a mm.tnl ed to the demon etisation of 86 (c) Part ially I (LI C ( d) Par I ially false

perrt> nt of the Indian curren cy in c irculati o n.

Holder s of th e demo n etised curren cy we re 60. The recent demone lisalion in which
givC'n Lill 3 I st Decem ber, 2016 lo excha ngr Prime Ministe r Nare ndra Modi
lhl'tr demon etised bills for newlv issued demo n etised t 500 a nd t 1,00()
currrn c~·. which v. ou ld b e in de~o minatiorn, curren cy bills was annou nced on
of .'iO0 and 1,000 rupt'cs. (a) 8th N ovembP r 2017
Demon e ll~a.tiuo as a lOol for fighti ng crime. (bl 8th N ov~m, ,,,r 2016
i.ax evahlon , and activities in lhe underg round (c) 6th Novemb er 2017
e cono m y has been advoca ted in the pa st. The (d) 6th Novemh N. 20 In
arhrum ent rest:, o n the pre mise that, in a.n
61. Which o f lhc followi ng gives the correct
1n te rna 11o na l con1e,1, many underg roun d
rn ean.ing of legal lend e r slalus ?
econom ic aclivities arc finnn ced using
(al Legally r ecognis ed paymen t ins trument
largt' denom inatio n cu rrency notes. A unique usrd I o f uli ,1 il finanr.111 comm1t rne.,1
a!>pl'Ct of the Indian m easure was that it was
lb) Legally '"'"oy111-;ed pa~•ment n,•rurw nr
carrit>d out during a perio d o f econ omic usc-d t o fulf il rtf'b ts o f more than ~ 1crnrl'
stability, bul with ,·-.:r)' little lime given to the (cl '- Pgally Iecorin,s ed paymen t 111strume 11t
public. l u ext.ban ge their d emone tist-d bills. useo t o 1111111 d ebt s of less than f I crciv
Th,i. cr eated the poLentiaJ for a. lot of (c l Non e o f thr-o above
disrupl io 11 and 1m o nve nicnrc i.inn• the
de moneu wd biJb, i:~pecia lh th,, iOO rupee .
Direc tion R,eud tiltJ /Ql/o .
w 11111 CUSt' :;(/IC1_v
b ill two rth J.buut US$ I~ a 1 p1 c, a_il 111g 011 d a u :;wer lhe. .
• IJ IW.<11,1011,N IL(). (j2 In 66.
e xr hangt• mt.es). were h eavil> in u:.c fo1 dad) T hl' procf'"''- o f g lobolisn...... •: ...L.. h
l.b - •· • . 011 ,nroug...
Lran~aclion ~ t er..utSatio n and
roduce d p . pn vausati on policies has
57. Denio ne osatlon implu.>s ....... . P , <>rn1v"' as we ll ns . , lu
Ul>lli fo r l nlli u d 0 th negauv r resu
a ,t, riotnq tni> teq~ e11t!1•fl!! &l1J'- ..,, ,; r:w, 11 ...
Inwuo . ru, c .. countri e~. In the
(bl ,..,mo,..,nq r i>na n c-c1rr,., ·1 not,.. f rom If ,
oonte>.c.. su m o st d "
1 th t.· u 1sis that e ru ed u ies have stntcd dit1I
mor~el ,) 00 IOYi!'>l•fl l} II Mn y.,v, m•111 f
m I he t•orly 1!19( "--
. ·l l',.. III "j CUI fllll'COll
Ilotlt pt
t Q r i) ~
w:1!1
t,qruJ' 0 0
inequal ities i11 Ind ' t_ d ~p-roo tNI
,:J :, uer .. t!!l,r ••u,c: n 1t 11•tlo :, 1,en,, n
,,nn /I •,f tt ' n Cl r1f, JC'?' 1 f• 1fl 1
l'l •m o mk ,~form p 0 1.
,.u,soc11•1, d I
an t lt'
•oes i nrtiat ·
',J 1 !di ,f it,,. tt ,, , ... 1 t')Jm ns,' 10t h.._. en,· ed :is o
1
IN ' " 111 0 h
l'Xll'rno ll r n,t v,sed nr. i· 1-4u, 1'l111nc111. "~'
58. f hi 111 ,, 1,,. 1 t· a , 11nl, I 11,h
,·n tn 1 •~· '"' pac l..-••~H! , 1·11r1h l'r
.1~1-11 : 1\ ,l ll'd th <' incl'llti l •).lh,
d <>m•HH'lll>Ullfln of r 11 n 1•11 n • hrll- 'I

1..., , ••i/f 1r 111•·1lth fh 1\ vlH' ·,,- 111111•1111 I 1"11,· N,·" I·.,"""" ''' I'" 1,IC" \ • ..fi
It)() I h . i- 1·1':1~1
,J,, I itf"d tl rll! • d1u 1111 tlll ll' ,111d l flltll tt\ · · II~ 1n
lir 1 •;I 4 , 1
x11111• (Js
O '-U t t:,1 1 •
1111 F' 1,n ,n,," , t , •
, ,• J t, rru Jflt • , t t t """ '"E:I I llllllll h : , ,u1d 1L mp11un c,I
, urrr, r\r V' u , , ,, ,111 ,,, ,tr,., •n• " , 1,, ., • 111,HH (lll ll ,11.(><f ,,,l,) . \\l.b h.1 -
II(' S l ll
·
111 " " ' " ' , )~ I~·u ;u <':1S
'FSL NelM Patte rn ~ Econo mics XIJ (Term I)
~ - - --- ---. :..:: ..=: ..:~- - -- - - - - ~ 8 5
. the services sector su ch as
:lecommunica~ on , info nnatio n techno logy,
'.flance, enterta inmen t, trave l and hospit ality
,tf\ices, real estate and trade, rather than
;,tal sectors such as agricu lture and indust ry
,hich provide livelih oods to millio ns of
~ople in the count ry.
62. Econom ic reform s achiev ed the
planning object ive of growt h with
equity. The given statem ent is
(al True (bl False
le) Partially tru e (d) Can't say
63, Which o f the follow ing factor is
incorre ct with regard to the growt h of
service sector durin g the reform
period?
cheap and skilled labour
la) Availab ilit y of
(bl Growth of IT sector and spill over effects on
the use of interne t. telecom munica tions,
mobile phones etc.
kl Huge inflow of foreign capital and
investm ent s
Id) Increas ed tax rates on
·
fore1g n invest men
with no tax holiday s
tA . 1.ng the al
The major reason exp Iam
U't,
. growth rate o f agn·cultur
decIine m
· d
sector during the reform pe no
Was/wer e
(a) decline in public investm ent in t his c;ect or
(b) removal of fertilize r subsidy increased t hP
cost of product ion which s1gn1f icant ly
affec ted small farmers
(c) reduc tion in export duties resulted Indian
farmers to race internat ional compet ition
(d) All or the above
65. Assertion (A) Indust rial sector
perfor med poorly during the reform
period .
Reason (R} In adequa te investment in
infrastructure and cheape r import s
resulte d in poor perfor mance.
Altern atives
(al Both Assert ion (Al and Reason (R} are true
and Reason (R) is the correct explana tion of
Assertion (Al
(bl Both Assertion (A) and Reason (Rl are true,
but Reason ( R) is not t he correct
explana tion of Assert ion (Al
(cl Assertio n (A) is true, but Reason (Rl is f alse
(dl Assertion (A) is raise, but Reason (R) is true
66. As a result of econo mic reform , . ••••••· •
ts sector experi enced highes t growth rate.
(a) agricult ural
(bl indust ry
(cl services
(d) All sectors experienced equal growth rate
:D~
Huitt Choice Questions ANSWERS
1. ) 2. (b) 3. (b) 4. (b) 5. (c) 6. (b) 7. (b) 8. (d)
11. (b) 12. (a) 13. (a) 14. (a)
9 fcJ 10 fcJ
15. (d) 16. (c) 17. (a) 18. (b) 19. fdJ
21. (a) 22. (c) 20. (bJ
23. (c) 24. (c) 25. (a) 26. (b) 27. (a) 28. (b) 29 (d) JO (CJ
31. (b) 32. (c) 33. (d) 34. (a) 35. (a) 36. (d) 37. (c) 38. (a) 39 fb) .UJ fdJ
41 . (c) 42. (d) 43. (d)
Assertion-Reasoning MCOs
46. (c) 47. (c) 48. (a) 49. (a) SO. (a) 51. (d)
44. (a) 45. (a)

Case Based MCOs 60. (bJ 51 ( a)

57. (a) 58. (d) 59. (d)
55. (b) 56. (c)
52. (c) 53. (d) 54. (C)
65. (a) 66. (c)
62. (b) 63. (d) 64. (d)