The root of the 1991 crisis was that, for years, the government had

spent more than it earned and borrowed to cover the gapCorrect answerYour answerearned more than it spent and saved the surplus abroadCorrect answerYour answerrefused to borrow from abroad at allCorrect answerYour answerexported much more than it importedCorrect answerYour answer

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CorrectNot quiteAnswer A

Correct answer: A

Spending on development and welfare ran ahead of revenue, so the government borrowed at home and abroad.
Imports also kept growing faster than exports, so foreign debt piled up.

Concept: Causes of the crisis
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe 1991 crisis

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Ten questions from Economic Reforms since 1991 (LPG), at your own pace.

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Ten questions from Economic Reforms since 1991 (LPG), at your own pace.

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The root of the 1991 crisis was that, for years, the government had

Explanation