FREE Bachelor of Commerce: Economics Questions and Answers

Question 1

Which of the following aspects of the New Industrial Policy of 1991 wasn't present?

Accepted Answer

setting up of new public sector enterprises

Answer

India's New Industrial Policy of 1991 marked a significant shift towards economic liberalization, privatization, and globalization. Key aspects included permitting foreign investment, removing the Monopolies and Restrictive Trade Practices (MRTP) limit, and abolishing industrial licensing for most sectors. The policy's intent was to reduce the state's role in the economy, thus actively discouraging, rather than setting up, new public sector enterprises.

Question 2

One of the measures taken to increase the effectiveness of the public sector was

Accepted Answer

raising fresh equity from the market

Answer

During economic reforms, many public sector enterprises (PSEs) were encouraged to raise fresh equity from the market. This measure aimed to reduce the government's financial burden and introduce market discipline. By involving private investors, PSEs were expected to become more efficient, accountable, and gain capital for modernization and expansion.

Question 3

Which of the following was a significant banking industry reform that was implemented in 1991?

Accepted Answer

introduction of prudential norms

Answer

The 1991 economic reforms in India included significant changes in the banking sector, largely based on the Narasimham Committee recommendations. A key reform was the introduction of prudential norms, such as capital adequacy ratios and asset classification. These norms aimed to strengthen the financial health and stability of banks, bringing them in line with international standards.

Question 4

Health insurance is provided by Rashtriya Swasthya Bima Yojana to

Accepted Answer

workers in the unorganized sector

Answer

The Rashtriya Swasthya Bima Yojana (RSBY) was a government-sponsored health insurance scheme launched in India. Its primary objective was to provide health insurance coverage to families belonging to the Below Poverty Line (BPL) category. Specifically, it targeted workers in the unorganized sector to protect them from catastrophic health expenditures.

Question 5

India's agricultural prices are

Accepted Answer

uncertain

Answer

India's agricultural prices are often characterized by significant uncertainty and volatility. This is due to factors like dependence on monsoon, market imperfections, and fluctuations in demand and supply. Farmers frequently face price crashes during bumper harvests and price spikes during lean seasons, leading to income instability.

Bcom Bachelor of Commerce Practice Test

Bcom Bachelor of Commerce Practice Test

FREE Bachelor of Commerce: Economics Questions and Answers