Liberalization, Privatization and Globalization One Mark Online Test

Liberalization, Privatization and Globalization One Mark Online Test (12th Standard Commerce)

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__________ is the result of New Industrial Policy which abolished the 'License System'.

A.Globalisation B.Privatisation C.Liberalisation D.None of these

__________ means permitting the private sector to set up industries which were previously reserved for public sector.

A.Liberalisation B.Privatisation C.Globalisation D.Public Enterprise

__________ ownership makes bold management decisions due to their strong foundation in the international level.

A.Private B.Public C.Corporate D.MNC's

__________ results from the removal of barriers between national economies to encourage the flow of goods, services, capital and labour.

A.Privatisation B.Liberalisation C.Globalisation D.Foreign Trade

New Economic Policy was introduced in the year _______.

A.1980 B.1991 C.2013 D.2015

Which one of the following is NOT one of the three dimensions of the New Economic Policy?

A.Liberalisation B.Privatisation C.Globalisation D.Nationalisation

The base for the New Economic Policy adopted in various countries of the world is the

A.Dunkel Draft B.Memorandum of Understanding C.TRIPS agreement D.Industrial Policy of 1956

Mr. Arthur Dunkel submitted a 22,000 page document to which organisation?

A.International Monetary Fund B.World Bank C.World Trade Organisation D.Reserve Bank of India

Before liberalisation, how many industries were kept outside liberalisation and still needed a licence?

A.Five B.Six C.Eight D.Seventeen

Q10

Out of the six non-liberalised industries, which one has since been liberalised, leaving only five under compulsory licensing?

A.Explosives B.Tobacco products C.Drugs and pharmaceuticals D.Hazardous chemicals

Q11

Under liberalisation, the investment limit of small scale industries was raised to

A.Rs. 10 lakh B.Rs. 50 lakh C.Rs. 1 crore D.Rs. 5 crore

Q12

In 1991, as an immediate measure to resolve the balance of payments crisis, the Government of India

A.devalued the rupee against foreign currencies B.raised the value of the rupee against foreign currencies C.stopped all imports into the country D.nationalised all foreign companies

Q13

Consider the following:
1. Increase in foreign investment
2. Reduction in external borrowings
3. Increase in unemployment
Which of the above are advantages of liberalisation?

A.1 and 2 only B.2 and 3 only C.1 and 3 only D.1, 2 and 3

Q14

Assertion (A): Trade liberalisation may cause unbalanced development.
Reason (R): Trade liberalisation often benefits developed countries rather than developing economies which cannot compete against free trade.

A.Both A and R are true and R is the correct explanation of A B.Both A and R are true but R is not the correct explanation of A C.A is true but R is false D.A is false but R is true

Q15

After liberalisation, the Indian economy contributed $1.3 trillion to world GDP and became the ______ largest among the world's leading economies.

A.third B.fifth C.seventh D.tenth

Q16

What was the main reason for privatisation of Public Sector Units in India?

A.PSUs were running in losses due to mismanagement and political interference B.PSUs were earning too much profit C.Foreign companies refused to invest in PSUs D.PSUs had too few workers

Q17

Which was the first ever company privatised in India?

A.Bharat Aluminium Co. Ltd (BALCO) B.India Scooters Limited C.Maruti Udyog Ltd (MUL) D.Hindustan Zinc Ltd (HZL)

Q18

Under privatisation, the number of industries reserved for the public sector was reduced from ______ (as per the 1956 policy) to ______.

A.17 to 8 B.17 to 3 C.8 to 3 D.6 to 5

Q19

At present, which industries remain Government monopoly industries, that is, public sector industries, in India?

A.Atomic Energy, Defence and Railways B.Coal, Lignite and Railways C.Atomic Energy, Mining of ores and Defence D.Mineral oils, Defence and Railways

Q20

The Memorandum of Understanding (MoU) system was introduced in 1991 mainly to

A.raise the productivity and performance of PSUs B.sell all PSUs to foreign companies C.fix the maximum production capacity of industries D.abolish the public sector completely

Q21

Match the forms of privatisation with their meaning:
(A) Disinvestment - 1. Industries reserved for public sector cut from 17 to 8
(B) Memorandum of Understanding - 2. Selling loss-making PSUs to the private sector
(C) Contraction of public sectors - 3. Shares of PSUs sold to the public and financial institutions
(D) Sale of shares of public sectors - 4. Raising productivity and performance of PSUs

A.A-2, B-4, C-1, D-3 B.A-3, B-4, C-1, D-2 C.A-2, B-1, C-4, D-3 D.A-4, B-2, C-3, D-1

Q22

Through the sale of shares of PSUs, the share of the private sector increased from ______ in the year 2011 and after.

A.45% to 55% B.25% to 45% C.55% to 75% D.17% to 8%

Q23

Which one of the following is NOT a disadvantage of privatisation?

A.Lack of welfare B.Political pressure C.Ignores the weaker sections D.Professional management

Q24

Under the foreign trade policy of globalisation, India signed the TRIPS agreement. TRIPS stands for

A.Trade Related Intellectual Property Rights B.Trade Related Investment Policy System C.Tariff Regulation in Public Sector D.Trade Restrictions in Private Sector

Q25

In the context of globalisation, 'repatriate' means

A.to send or bring money back to one's own country B.to sell public sector shares to private buyers C.to remove the licence system D.to reduce customs duties on imports

Q26

Which one of the following is an impact of privatisation mentioned in the lesson?

A.Positive impact on financial growth by decreasing deficits and debts B.Abolition of the licence system C.Devaluation of the rupee D.Boom in the consumer products market

Q27

A situation in which a country loses its most educated and talented workers to other countries through migration is called

A.Brain drain B.Disinvestment C.Deregulation D.Repatriation

Q28

Assertion (A): Dominance of foreign institutions is a disadvantage of globalisation.
Reason (R): Under globalisation, economic power shifts from independent industries to international organisations, which is a threat to national sovereignty.

A.Both A and R are true and R is the correct explanation of A B.Both A and R are true but R is not the correct explanation of A C.A is true but R is false D.A is false but R is true

Q29

Which one of the following is NOT a highlight of the LPG policy?

A.Introduction of new Foreign Trade Agreements B.Deregulation C.Tax reforms D.Introduction of the licence system

Q30

Who is considered the architect of Indian economic reforms, who introduced the policy of liberalisation in India in 1991?

A.Dr. Manmohan Singh B.Arthur Dunkel C.Jawaharlal Nehru D.Indira Gandhi

Q31

Consider the following statements about the impact of globalisation:
1. Multinational corporations can manufacture, buy and sell goods worldwide.
2. Globalisation has led to a boom in the consumer products market.
3. The advent of foreign companies has led to job creation.
4. Globalisation has narrowed the gap between the rich and the poor.
Which of the statements given above are correct?

A.1, 2 and 3 only B.1 and 4 only C.2, 3 and 4 only D.1, 2, 3 and 4

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This free online practice test covers Liberalization, Privatization and Globalization from the 12th Standard Commerce (Samacheer Kalvi) syllabus. Choose the number of questions and an optional time limit, then answer and submit — everything is checked in your browser, with the correct answers and a worked explanation shown at the end. For the full solutions to every question in this set, see the solved MCQs page.

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