Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

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

Question:

Answer the following questions after reading the paragraph given below:

“On a morning, a few minutes before 7 A.M., Deeksha, who is an employee in Easyveasy ltd. sat in front of her computer with her headset on and said in accented English ‘Hello, Kinsey’. Seconds later, she gets the reply, ‘Hello, Deeksha’. The two chatted excitedly before Deeksha said that ‘we will work on pronouns today’. Nothing unusual about this chat except that Deeksha, 22, was in Delhi and her student Kinsey, 13, was at her home in New Jersey,USA. Using a simulated whiteboard on their computers, connected by internet, and a copy of Kinsey's textbook in front of Deeksha, she guides the teenager through the intricacies of nouns, adjectives and verbs. Deeksha, who grew up speaking Hindi, was teaching Kinsey English grammar, comprehension and writing.”

Which of the following policy measure was undertaken by the government during the economic reforms of 1991?

Options:

Revaluation of Indian rupee

Depreciation of Indian rupee

Devaluation of Indian rupee

Appreciation of Indian rupee

Correct Answer:

Devaluation of Indian rupee

Explanation:

In 1991, as an immediate measure to resolve the balance of payments crisis, the rupee was devalued against foreign currencies. This led to an increase in the inflow of foreign exchange.