Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

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

Question:

What was the immediate measure taken in the foreign exchange market in 1991 to resolve the balance of payments crisis in India?

Options:

Imposition of import quotas

Increase in foreign direct investment

Loans from the World Bank

None of the above

Correct Answer:

None of the above

Explanation:

In 1991, as an immediate measure to resolve the balance of payments crisis, the Indian government devalued the rupee against foreign currencies. This devaluation aimed to increase the inflow of foreign exchange and improve the country's external financial position.