Indian Economy Test-2

The correct option is a, because 17 industries were reserved for public sector,Which reduced to 8 under New Industrial Policy.

India 's Prime Minister during 1990, when the economic crisis was unfolding, was Vishwanath Pratap Singh (V. P. Singh) . He served as the Prime Minister of India from December 1989 to November 1990. The economic crisis that began during his tenure led to significant economic reforms in the subsequent years under Prime Minister P. V. Narasimha Rao.

When India sought a loan from the International Monetary Fund (IMF), the Indian government pledged a portion of its gold reserves as collateral. This collateral provided assurance to the IMF that the loan would be backed by valuable assets. By using gold reserves as collateral, India demonstrated its commitment to repaying the loan and mitigating the risk for the IMF. This collateralization of gold reserves is a common practice when countries borrow from international financial institutions like the IMF.

Globalization aims at increasing the integration and interdependence among countries. Therefore, a is the correct option.

After the New Economic Policy, the growth of Indian economy is mainly driven by the service sector. So, b is the correct option.

IBRD or International Bank of Reconstruction and Development was the other name of the World Bank, therefore, the correct option is c.

The correct answer is (a) RBI, which stands for Reserve Bank of India. The financial sector in India is primarily regulated and supervised by the Reserve Bank of India. The RBI is the central banking institution in India and is responsible for formulating and implementing monetary policy, regulating and supervising banks, managing foreign exchange reserves, and promoting the stability and development of the financial system in the country. While entities like State Bank of India (SBI) and Industrial Development Bank of India (IDBI) play important roles in the Indian financial sector, the ultimate regulatory authority lies with the RBI.

The correct answer is (d) July. The Goods and Services Tax (GST) Act came into effect from July 1, 2017. The GST is a comprehensive indirect tax system that replaced multiple indirect taxes levied by the central and state governments in India. It is a single tax regime that is applicable throughout the country and aims to streamline the tax structure, eliminate cascading effects, and create a unified market. The implementation of the GST Act marked a significant reform in India 's taxation system.

The correct answer is (b) Devalued. In 1991, as an immediate measure to resolve the balance of payment crisis, the Indian rupee was devalued against foreign currencies. Devaluation refers to a deliberate decrease in the value of a country 's currency relative to other currencies. By devaluing the rupee, the Indian government aimed to make exports more competitive and encourage inflows of foreign currency. Devaluation helps to boost exports and address trade imbalances by making the country 's goods and services relatively cheaper in international markets. Therefore, devaluation was one of the measures implemented in 1991 to address the balance of payment crisis in India.

The correct answer is (d) World Trade Organisation (WTO). The successor organization of the General Agreement on Trade and Tariff (GATT) is the World Trade Organisation (WTO). GATT was established in 1947 as an international agreement to promote trade liberalization and regulate global trade relations. Over time, as GATT evolved and expanded, it led to the establishment of the WTO in 1995.
The WTO serves as a global organization that deals with the global rules of trade between nations. It provides a framework for negotiating trade agreements, settles trade disputes, and monitors the implementation of trade policies. The WTO plays a vital role in facilitating international trade, promoting fair trade practices, and fostering economic cooperation among its member countries.
Therefore, the WTO is the successor organization of GATT and continues to govern international trade and address trade-related issues among its member nations.