Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

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

Question:
What was the condition of India's foreign exchange reserves during the crisis of 1991?
Options:
Insufficient to finance imports for more than two weeks
Insufficient to finance imports for more than one week
Insufficient to finance imports for more than eight weeks
Insufficient to finance imports for more than four weeks
Correct Answer:
Insufficient to finance imports for more than two weeks
Explanation:
In 1991, the foreign exchange reserves declined to a level that was not adequate to finance imports for more than two weeks.