Read the passage and answer the following question:

Globalisation involves a stretching of social and economic relationships throughout the world. This becomes possible through the introduction of certain policies. This process is broadly known as liberalisation in India. Liberalisation technically involves steady removal of rules that regulated trade and finance regulations. Once these are done, it constitutes economic reforms. Besides this liberalisation as a process also involves taking loans from international institutions such as International Monetary Fund (IMF). It is important to mention that certain condition are imposed before loans are sanctioned to a country, which thereby leads to introduction of new economic measures. These conditions constitute the Structural Adjustments. These adjustments usually mean cuts in state expenditure on social sector.

Economic reforms include:

Regulation of trade and finance

The correct answer is Option (3) → Regulation of trade and finance

Economic reforms include the "Regulation of trade and finance." Liberalization, which is a part of economic reforms, involves the removal of rules that regulated trade and finance regulations. Therefore, it encompasses both aspects: trade and finance.

No regulation either for finance or trade: This scenario goes against the very definition of "economic reforms" which involve changes in existing regulations.