Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:

In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.

Assertion (A)- Privatisation of the public sector enterprises by selling off minor part of the equity of PSEs to the public sector is known as disinvestment.

Reason (R)- The purpose of the sale of equity in PSEs was aimed at improving financial discipline and facilitate modernisation.

Options:

Both (A) and (R) are true and (R) is the correct explanation.

Both (A) and (R) are true but (R) is not the correct explanation of (A).

(A) Is true but (R) is false.

(A) ss false but (R) is true.

Correct Answer:

(A) ss false but (R) is true.

Explanation:

The correct answer is Option 4: (A) ss false but (R) is true.

Assertion (A)- Privatisation of the public sector enterprises by selling off minor part of the equity of PSEs to the public sector is known as disinvestment. This is incorrect. Privatisation of the public sector enterprises by selling off minor part of the equity of PSEs to the private sector (not public sector) is called disinvestment.

Reason (R)- The purpose of the sale of equity in PSEs was aimed at improving financial discipline and facilitate modernisation. This statement is true.