Match List I with List II and select the correct answer using the code given below: List I | List II A. IBRD | 1. Improving efficiency of the economy B. Stabilisation | 2. Abolished for most industries C. Structural Reform | 3. Correcting Balance of Payments D. Industrial Licensing | 4. Popularly known as World Bank

The correct Answer is A-4, B-3, C-1, D-2 Explanation This question pertains to economic reforms and institutions, specifically focusing on the International Bank for Reconstruction and Development (IBRD), economic stabilization measures, structural reforms, and industrial policy changes in India. Statement-wise Analysis 1. A. IBRD - 4. Popularly known as World Bank Correct: The International Bank for Reconstruction and Development (IBRD) is the original institution of the World Bank Group and is commonly referred to as the World Bank. It provides financial and technical assistance to developing countries around the world. 2. B. Stabilisation - 3. Correcting Balance of Payments Correct: Stabilisation measures in economics typically refer to short-term policies aimed at correcting macroeconomic imbalances, such as a high inflation rate or a large balance of payments deficit. Correcting the Balance of Payments is a primary objective of stabilisation policies. 3. C. Structural Reform - 1. Improving efficiency of the economy Correct: Structural reforms are long-term policies designed to improve the supply side of the economy by enhancing its efficiency and flexibility. These reforms often involve changes in institutions, regulations, and market structures to boost productivity and growth potential. 4. D. Industrial Licensing - 2. Abolished for most industries Correct: In India, industrial licensing was a key feature of the pre-1991 economic policy, requiring government permission to set up or expand industries. The New Industrial Policy of 1991 largely abolished industrial licensing for most industries, except for a few strategic sectors, as part of economic liberalisation. Key Takeaway The question tests knowledge of key economic institutions (IBRD/World Bank) and fundamental concepts of economic reforms, including stabilisation and structural adjustment, along with specific policy changes like the abolition of industrial licensing in India.

NCERT Class 11 Economics — Chapter 3: Liberalisation, Privatisation and Globalisation: An Appraisal

mcqeasy

Match List I with List II and select the correct answer using the code given below:

List I	List II
A. IBRD	1. Improving efficiency of the economy
B. Stabilisation	2. Abolished for most industries
C. Structural Reform	3. Correcting Balance of Payments
D. Industrial Licensing	4. Popularly known as World Bank

Official previous-year question

Verified 1 Aug 2026.

Options

AA-4, B-3, C-1, D-2
BA-4, B-1, C-3, D-2
CA-3, B-4, C-1, D-2
DA-1, B-2, C-3, D-4

Did you get this right?

Solution

The correct Answer is A-4, B-3, C-1, D-2

Explanation

This question pertains to economic reforms and institutions, specifically focusing on the International Bank for Reconstruction and Development (IBRD), economic stabilization measures, structural reforms, and industrial policy changes in India.

Statement-wise Analysis

A. IBRD - 4. Popularly known as World Bank
Correct: The International Bank for Reconstruction and Development (IBRD) is the original institution of the World Bank Group and is commonly referred to as the World Bank. It provides financial and technical assistance to developing countries around the world.
B. Stabilisation - 3. Correcting Balance of Payments
Correct: Stabilisation measures in economics typically refer to short-term policies aimed at correcting macroeconomic imbalances, such as a high inflation rate or a large balance of payments deficit. Correcting the Balance of Payments is a primary objective of stabilisation policies.
C. Structural Reform - 1. Improving efficiency of the economy
Correct: Structural reforms are long-term policies designed to improve the supply side of the economy by enhancing its efficiency and flexibility. These reforms often involve changes in institutions, regulations, and market structures to boost productivity and growth potential.
D. Industrial Licensing - 2. Abolished for most industries
Correct: In India, industrial licensing was a key feature of the pre-1991 economic policy, requiring government permission to set up or expand industries. The New Industrial Policy of 1991 largely abolished industrial licensing for most industries, except for a few strategic sectors, as part of economic liberalisation.

Key Takeaway

The question tests knowledge of key economic institutions (IBRD/World Bank) and fundamental concepts of economic reforms, including stabilisation and structural adjustment, along with specific policy changes like the abolition of industrial licensing in India.

Your note

More from Chapter 3: Liberalisation, Privatisation and Globalisation: An Appraisal

With reference to the economic crisis of 1991 in India, consider the following statements: 1. The crisis was triggered because the government was unable to make repayments on its borrowings from abroad. 2. Foreign exchange reserves were sufficient for more than a year of imports. 3. The crisis was compounded by rising prices of essential goods. Which of the statements given above is/are correct?

medium

Consider the following statements regarding the deregulation of the industrial sector under the 1991 reforms: 1. Industrial licensing was abolished for all product categories without exception. 2. Industries reserved for the public sector were reduced to only a part of atomic energy generation and some core activities in railway transport. 3. The market was allowed to determine prices in most industries. Which of the statements given above is/are correct?

medium

With reference to the 'Outsourcing' phenomenon under globalisation, consider the following statements: 1. It involves a company hiring regular services from external sources which were previously provided internally. 2. The growth of outsourcing is primarily driven by the stagnation of the manufacturing sector in developed countries. 3. India has become a destination for outsourcing due to low wage rates and the availability of skilled manpower. Which of the statements given above is/are correct?

medium

With reference to the trade policy reforms initiated in 1991, consider the following statements: 1. Quantitative restrictions on imports of manufactured consumer goods were fully removed immediately in 1991. 2. Export duties were removed to increase the competitive position of Indian goods in international markets. 3. Import licensing was abolished except for hazardous and environmentally sensitive industries. Which of the statements given above is/are correct?

hard

Consider the following statements regarding the performance of the agriculture sector during the reform period: 1. Public investment in the agriculture sector has declined in the reform period. 2. The removal of fertiliser subsidy has decreased the cost of production for farmers. 3. There has been a shift from export market production to domestic market production. Which of the statements given above is/are correct?

medium

Keep practising Chapter 3: Liberalisation, Privatisation and Globalisation: An Appraisal

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The correct Answer is A-4, B-3, C-1, D-2

Explanation

Statement-wise Analysis

A. IBRD - 4. Popularly known as World Bank
Correct: The International Bank for Reconstruction and Development (IBRD) is the original institution of the World Bank Group and is commonly referred to as the World Bank. It provides financial and technical assistance to developing countries around the world.
B. Stabilisation - 3. Correcting Balance of Payments
Correct: Stabilisation measures in economics typically refer to short-term policies aimed at correcting macroeconomic imbalances, such as a high inflation rate or a large balance of payments deficit. Correcting the Balance of Payments is a primary objective of stabilisation policies.
C. Structural Reform - 1. Improving efficiency of the economy
Correct: Structural reforms are long-term policies designed to improve the supply side of the economy by enhancing its efficiency and flexibility. These reforms often involve changes in institutions, regulations, and market structures to boost productivity and growth potential.
D. Industrial Licensing - 2. Abolished for most industries
Correct: In India, industrial licensing was a key feature of the pre-1991 economic policy, requiring government permission to set up or expand industries. The New Industrial Policy of 1991 largely abolished industrial licensing for most industries, except for a few strategic sectors, as part of economic liberalisation.