Question

Which of the following major developments have been undertaken after the initiation of structural reforms in 1991 of the Indian Economy?

• A. A general deregulation of interest rates and a greater role for market forces in the determination of both interest and exchange rates
• B. The phase out of ad hoc Treasury Bill, which puts a check on the automatic monetization of the fiscal deficit
• C. An exchange rate anchor under a Proportional Reserve System
• D. A commitment to the Fiscal Responsibility and Budget Management (FRBM) which sought to put ceiling on the overall fiscal deficit

Answer 1

Answer: (A), (B), (D)

A general deregulation of interest rates and a greater role for market forces in the determination of both interest and exchange rates

Answer 2

The correct options is (A): A general deregulation of interest rates and a greater role for market forces in the determination of both interest and exchange rates, (B): The phase out of ad hoc Treasury Bill, which puts a check on the automatic monetization of the fiscal deficit and (D): A commitment to the Fiscal Responsibility and Budget Management (FRBM) which sought to put ceiling on the overall fiscal deficit