Assertion (A): Disinvestment means the government sells its entire stake in every public firm.
Reason (R): In disinvestment, shares of public sector firms are sold to the public.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Disinvestment often sells only part of the government's shares, so A is false.
R is true.

Concept: Disinvestment
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsPrivatisation and disinvestment

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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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Assertion (A): Disinvestment means the government sells its entire stake in every public firm.Reason (R): In disinvestment, shares of public sector firms are sold to the public.

Explanation

Assertion (A): Disinvestment means the government sells its entire stake in every public firm.
Reason (R): In disinvestment, shares of public sector firms are sold to the public.