Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal
Question:
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.
Options:
1, 2, 3 and 4
1 and 3
1 and 2
1,2 and 4
Correct Answer:
1 and 3
Explanation:
The correct answer is Option 2: 1 and 3
Here's why:
New economic policy was announced in the year 1993: This is false. The New Economic Policy (NEP) was announced in 1991, not 1993.
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.
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.
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.
