Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

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

Question:

What term is used to describe the loss of ownership rights of government in its asset?

Options:

Disinvestment

Nationalisation

Liberalisation

None of these

Correct Answer:

Disinvestment

Explanation:

Privatisation of the public sector enterprises by selling off part of the equity of PSEs to the public is known as disinvestment. The purpose of the sale, according to the government, was mainly to improve financial discipline and facilitate modernisation.