Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Topic

Economics

Question:

Which of the following measures were taken by the government to correct the balance of payment position of the country during the economic crisis of 1991?

Options:

Structural measures

Stabilization measures

Situational measures

Rigid measures

Correct Answer:

Stabilization measures

Explanation:

Stabilization measures are short-term measures, intended to correct some of the weaknesses that have developed in the balance of payments and to bring inflation under control. The government devalued the currency in order to increase the exports of the nation and to bring back the balance of payment position to the normal level.