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Economic Reforms since 1991 (LPG) · Question 8 of 65

Question 8

HardOriginal question

Read the two statements and choose the correct option.

I. A rise in oil prices during the Gulf crisis of 1990–91 added to India's import bill.

II. In 1991, prices of essential goods in India were falling fast.

Options for question 8

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. Dearer oil meant more foreign exchange for the same imports: I is true.

  2. Prices of essential goods were rising sharply, so II is false.

Concept
Causes of the crisis
Typical time
100 s
Your time
—
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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