What was a significant objective of the fiscal and monetary policy reforms initiated in India post 1991?
To stabilise the economy by liberalising interest rates and enhancing financial sector efficiency
The 1991 economic reforms in India were launched in response to a severe balance of payments crisis and aimed at liberalisation, privatisation and globalisation of the economy.
A central objective of the fiscal and monetary policy reforms was to stabilise the economy by deregulating administered interest rates, allowing them to be market-determined, and improving the efficiency and competitiveness of the financial sector.
The reforms actually encouraged, rather than decreased, foreign investment and reduced direct government control over banking, so those options are incorrect.
Hence, the correct objective was to stabilise the economy by liberalising interest rates and enhancing financial sector efficiency.
Similar Questions
The purchasing power of a currency relative to another at current exchange rates and prices is ________.
- Bank rate is the interest rate at which:
- After amalgamation of 26 Regional Rural Banks (RRBs) in fourth phase of amalgamation, as notified by Department of Financial Services (DFS) in 2025, how many RRBs will be left in the country?
- In which of the following years was the monetary policy framework moved towards flexible inflation targeting and a six member Monetary Policy Committee (MPC) constituted for setting the policy rate?
- Which of the following banks became State Bank of India after nationalisation in the year 1955 and has the largest number of branches in the world?
- How many major banks were nationalised by the government in 1969?
- Which of the following does the work of linking all the ATMs in India?
- Dear money refers to money that is hard to obtain due to:
'Indradhanush 2.0' is associated with:
- Which of the following is NOT an instrument of the monetary policy of the Reserve Bank of India?
Important Questions from Money and Banking
Dr. Urjit Patel, who has been appointed recently as Governor of Reserve Bank of India, was holding which position immediately prior to this appointment?
As per the RBI guidelines, which one of the following is the minimum tenure of Masala Bonds that an Indian company can issue offshore?
______ is a tax system that collects a greater share of income from those with high incomes than from those with lower incomes.
In which year had India's ratio of public debt to GDP gone up to a record 84.2%?
______ is an economic scenario where a peculiar combination of low growth and rising inflation leads to high unemployment.
