Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

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

Question:

Privatisation of the public enterprises by selling off the part of the equity of PSE's to the public is known as

Options:

Demonetisation

Disinvestment

Liberalisation

Privatisation

Correct Answer:

Disinvestment

Explanation:

The correct answer is option (2) : Disinvestment

Privatisation of the public sector enterprises by selling off part of the equity of PSEs to the public is known as disinvestment.

Explanation :

Demonetisation refers to the process of stripping a currency unit of its status as legal tender. It involves replacing the existing currency notes with new ones.

Liberalisation is the process of reducing restrictions or controls, often by a government, on economic activities. It can include measures to open up markets and promote competition.

Privatisation involves the transfer of ownership and control of government-owned enterprises to private entities.