Which of the following statements are false?
- New economic policy was announced in the year 1993.
- Stabilisation measures are short term measures to check BOP and inflation.
- Devaluation of rupee encourages imports and discourages exports.
- License is required for the production of Industrial explosive.
Answer & explanation
Correct answer: option 2
The correct answer is Option 2: 1 and 3
Here's why:
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New economic policy was announced in the year 1993: This is false. The New Economic Policy (NEP) was announced in 1991, not 1993.
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Stabilisation measures are short-term measures to check BOP and inflation: This is true. Stabilisation measures are typically implemented to address immediate economic issues such as Balance of Payments (BOP) deficits and inflation.
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Devaluation of rupee encourages imports and discourages exports: This is false. Devaluation of the rupee generally makes exports cheaper and more competitive abroad, thereby encouraging exports and discouraging imports due to increased cost.
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License is required for the production of Industrial explosive: This is true. The production of industrial explosives typically requires a license due to safety and regulatory concerns.