Practicing Success
Practicing Success
CUET Preparation Today
Which of the following is the reason behind the "Economic crisis" of 1991? |
Fall in the general prices of essential goods Excessive increase in the foreign exchange reserves Government was not able to make repayments on its borrowings from abroad All of the above |
Government was not able to make repayments on its borrowings from abroad |
In 1991, India met with an economic crisis relating to its external debt — the government was not able to make repayments on its borrowings from abroad; foreign exchange reserves, which we generally maintain to import petroleum and other important items, dropped to levels that were not sufficient for even a fortnight. The crisis was further compounded by rising prices of essential goods. All these led the government to introduce a new set of policy measures which changed the direction of our developmental strategies. |
