MCQ Questions for Class 12 Economics Chapter 3 Liberalisation, Privatisation and Globalisation: An Appraisal with Answers

Check the below NCERT MCQ Questions for Class 12 Economics Chapter 3 Liberalisation, Privatisation and Globalisation: An Appraisal with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided Liberalisation, Privatisation and Globalisation: An Appraisal Class 12 Economics MCQs Questions with Answers to help students understand the concept very well.

Liberalisation, Privatisation and Globalisation: An Appraisal Class 12 MCQs Questions with Answers

I. Choose the correct alternative.

Liberalisation Privatisation And Globalisation Class 12 MCQ Question 1.
In which year did India adopt the economic reforms?
(A) 1991
(B) 1993
(C) 1998
(D) 2001

Answer

Answer: (A) 1991


Liberalisation Privatisation Globalisation Class 12 MCQ Question 2.
Why there was a need for economic reforms in India?
(A) Due to fiscal deficit
(B) Due to adverse BOP
(C) Rise in prices
(D) All of the above

Answer

Answer: (D) All of the above


Liberalisation Privatisation And Globalisation MCQ Question 3.
When did the Gulf Crisis take place?
(A) 1985
(B) 1990-91
(C) 1995
(D) 1975

Answer

Answer: (B) 1990-91


Chapter 3 Indian Economy Class 12 MCQ Question 4.
How much loan was provided by World Bank and IMF during the nineties to bail India out of the crisis?
(A) $10 million
(B) $10 billion
(C) $7 billion
(D) $20 billion

Answer

Answer: (C) $7 billion


MCQ Of Liberalisation Privatisation And Globalisation Question 5.
What is the main feature of New Economic Policy?
(A) Liberalisation
(B) Privatisation
(C) Globalisation
(D) All of the above

Answer

Answer: (D) All of the above


MCQ On Liberalization, Privatization And Globalization Pdf Question 6.
For how many industries, licensing is still necessary?
(A) 7
(B) 6
(C) 9
(D) 10

Answer

Answer: (B) 6


MCQ On Liberalization, Privatization And Globalization Class 12 Question 7.
How many industries are entirely reserved for the public sector?
(A) 6
(B) 10
(C) 2
(D) 4

Answer

Answer: (C) 2


Liberalisation, Privatisation And Globalisation MCQ Question 8.
What is the investment limit in small scale industries?
(A) 50 lakh
(B) 1 crore
(C) 25 lakh
(D) 75 crore

Answer

Answer: (B) 1 crore


Ch 3 Indian Economy Class 12 MCQ Question 9.
When was VAT introduced in most of the States of India?
(A) 1995
(B) 2001
(C) 2005
(D) 2006

Answer

Answer: (C) 2005


MCQ On Liberalization Privatization And Globalization Class 12 Question 10.
How many countries are the members of WTO?
(A) 164
(B) 120
(C) 96
(D) 48

Answer

Answer: (A) 164


Liberalization Privatization And Globalization MCQ Question 11.
When was WTO established?
(A) 1996
(B) 1998
(C) 2000
(D) 1995

Answer

Answer: (D) 1995


Liberalisation Privatisation Globalisation MCQ Question 12.
Where is the headquarters of WTO located?
(A) Italy
(B) Geneva
(C) New York
(D) Washington

Answer

Answer: (B) Geneva


II. Fill in the blanks with the correct answer.

Liberalisation, Privatisation And Globalisation Class 12 MCQ Question 1.
India met with an economic crisis in 1991 as it failed to repay its _______ from abroad.

Answer

Answer: borrowings


MCQs On Liberalisation Privatisation And Globalisation Question 2.
_______ is the excess of expenditure (borrowings) over income.

Answer

Answer: Deficit


Economic Reforms Class 12 MCQ Question 3.
To overcome the crisis, India approached IMF and World Bank for _________

Answer

Answer: loan


Class 12 Liberalisation Privatisation And Globalisation MCQ Question 4.
Economic reforms refer to all those measures that aim at rendering the economy more efficient, competitive and _________

Answer

Answer: developed


MCQ Questions For Class 12 Liberalization Privatization And Globalization Question 5.
Fiscal policy refers to the revenue and expenditure policy of the government to achieve _______ development in the economy.

Answer

Answer: balanced


Class 12 Economics Liberalisation Privatisation And Globalisation MCQ Question 6.
Financial sectors were allowed to take decisions on various matters, without consulting ________

Answer

Answer: RBI


Question 7.
Trade policy reforms led to the removal of export duties to ________ India’s competitive position.

Answer

Answer: increase


Question 8.
India has become an important destination for global ______ since the reforms.

Answer

Answer: outsourcing


Question 9.
Trade between two countries is called ________ trade.

Answer

Answer: bilateral


Question 10.
The industrial sector has experienced _______ in growth pattern.

Answer

Answer: fluctuations


III. State whether the following statements are true or false.

Question 1.
Despite efficient management of the Indian economy, India faced an economic crisis in 1991.

Answer

Answer: False


Question 2.
The crisis led to a rise in the prices of essential goods.

Answer

Answer: True


Question 3.
Reserve Bank of India announced New Economic Policy as a condition to support the Indian economy.

Answer

Answer: False


Question 4.
Opening up the economy by removing restrictions on the private sector is called globalisation.

Answer

Answer: False


Question 5.
Industrial licensing was abolished on all products except on those which were important from a profit point of view.

Answer

Answer: False


Question 6.
The rupee was devalued to resolve the balance of payments crisis.

Answer

Answer: True


Question 7.
A fixed exchange rate system was adopted to avoid rigidity in the foreign exchange market.

Answer

Answer: False


Question 8.
Private ownership is capable of utilising capital and other resources more efficiently.

Answer

Answer: True


Question 9.
GATT is the successor to the WTO.

Answer

Answer: False


Question 10.
Opening up the economy resulted in a rapid increase in FDI and foreign exchange reserves.

Answer

Answer: True


IV. Match the following.

Question 1.

Column-I Column-II
1. Economic Reforms (A) 1995
2. Gulf Crisis (B) 2005
3. WTO (C) 1990-91
4. VAT (D) 1991
5. GATT (E) 1948
6. Liberalisation (F) Sale of public sector shares
7. Privatisation (G) Abolition of licensing
8. Globalisation (H) Integration of domestic economy with rest of the world
9. GST (I) Stripping a currency unit
10. Demonetization (J) An indirect tax
Answer

Answer:

Column-I Column-II
1. Economic Reforms (D) 1991
2. Gulf Crisis (C) 1990-91
3. WTO (A) 1995
4. VAT (B) 2005
5. GATT (E) 1948
6. Liberalisation (G) Abolition of licensing
7. Privatisation (F) Sale of public sector shares
8. Globalisation (H) Integration of domestic economy with rest of the world
9. GST (J) An indirect tax
10. Demonetization (I) Stripping a currency unit

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