1991 Crisis

Q.

Explain the lender of last resort function of the central bank.

Q.

Which institution agreed to lend money to India to cope with the BOP crisis?

1. World Bank

2. Government of China

3. US Government

4. International Monetary Fund

Q.

India’s balance of payments crisis occurred in the year:

1. 1950

2. 1984

3. 1963

4. 1991

Q. The agreed to loan funds to India to help with recovery from the 1991 BOP crisis.

1. Bank of England
2. World Bank
3. IMF
4. American Bank

Q. Which of the following was not immediate cause of 1991 economic crisis:

1. Expanding Fiscal deficit
2. Rising current account deficit
3. Severe inflation
4. Rapid growth of population

Q.

India had 2 annual plans for the year 1989-1992. State true or false.

1. False

2. True

Q. The signs of crisis which created the need for Economic Reforms in 1991 were ________________.

1. Inflation
2. All of the above
3. Low Forex Reserves
4. Huge National Debt

Q.

Which of these countries are major oil suppliers to India?

1. Vietnam

2. Brazil

3. Kuwait

4. Iraq

Q.

Which of the following hampered the growth of India before the reforms?

1. Nepotism

2. Elections

3. Import Quotas

4. Climate

Q. The IMF required India to in return for the loan service.

1. open the economy
2. close down
3. raise spending
4. borrow more

Q. Increasing inflation and unemployment is a situation of _____.

1. stagflation
2. galloping inflation
3. hyperinflation
4. reflation

Q.

Which of the following are among the conditions set by the IMF for the loan?

1. Ban of foreign investment

2. Abolition of subsidy

3. Open the economy to the private sector

4. Introduce open trade with the world