Foreign Currency Crisis

Q.

What are the objectives of government?

Q. India introduced a new economic policy in 1992.

1. False
2. True

Q. How did India overcome the foreign currency crisis?

1. By importing goods at higher prices
2. By introducing a new economic policy
3. By discouraging foreign trade
4. By imposing trade barriers

Q. In which of the following years did India introduce a new economic policy?

1. 1990
2. 1947
3. 1991
4. 1987

Q. Which of the following statements highlights a few objectives of the Five-Year Plans implemented by the Indian government?

1. Improve literacy rate of India.
2. Uplift the standard of living.
3. Introduce the capitalist form of economy.
4. Increase employment opportunities.

Q. In 1991, India faced the problem of an insufficient foreign currency reserve.

Which of the following statement(s) is/are correct regarding the situation mentioned above?

1. India had to import foodgrains from other countries.
2. India maintained sufficient reserve of foreign currencies.
3. India adopted special economic policies to overcome the crisis.
4. India tried to overcome this crisis by imposing trade barriers.

Q. Which of the following was one of the immediate causes of the depletion of India's foreign currency reserve in 1990?

1. Lack of employment opportunities
2. Lesser savings
3. Imports became very expensive
4. Poverty