Class 12 Liberalisation, Privatisation and Globalisation: An Appraisal Mock Test (CBSE)

Topics in Liberalisation, Privatisation and Globalisation: An Appraisal

• Background to the reforms of 1991
• Liberalisation
• Deregulation of industrial sector
• Financial sector reforms
• Tax reforms
• Foreign exchange reforms
• Trade and investment policy reforms
• Privatisation
• Globalisation
• Outsourcing
• World Trade Organisation
• Indian economy during reforms: an assessment
• Demonetisation
• Goods and Services Tax

Liberalisation, Privatisation and Globalisation: An Appraisal practice questions with answers

1. Q1Multiple choice·1 mark
   Financial sector reforms in India under the 1991 reforms aimed to reduce the role of the Reserve Bank of India (RBI) from a strict regulator to which of the following?

   1. (a)Regulator of international trade tariffs
   2. (b)Direct controller of all retail lending rates
   3. (c)Monopoly distributor of corporate credit
   4. (d)Facilitator of the financial sector
   Show answer and step marks

   1. Correct option: (d) Facilitator of the financial sector+1

   Answer: (d)
2. Q2Multiple choice·1 mark
   Which of the following measures was introduced under the deregulation of the industrial sector as part of the economic reforms of 1991?

   1. (a)Nationalisation of private commercial banks
   2. (b)Strict price controls on all manufactured goods
   3. (c)Abolition of industrial licensing for most product categories
   4. (d)Increase in the role of the public sector in all industries
   Show answer and step marks

   1. Correct option: (c) Abolition of industrial licensing for most product categories+1

   Answer: (c)
3. Q3Short answer·2 marks
   Explain any two measures or objectives of tax reforms introduced as a part of the economic reforms of 1991.
   Show answer and step marks

   1. First measure or objective, explained, any one of: reduction in personal income tax rates (high rates had caused tax evasion; moderate rates encourage savings and voluntary disclosure); gradual reduction in the corporation tax rate; reform of indirect taxes to create a common national market, leading to GST from July 2017; simplification of tax procedures to improve compliance; or any other valid tax reform of the period.+1
   2. Second measure or objective, a different one from the same list, explained.+1

   Answer: Any two of: lower personal income tax rates to curb evasion and encourage savings; lower corporation tax; indirect tax reform for a common national market (GST from 2017); simpler procedures for better compliance.

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