Question 1

Which generation of economic reforms in India emphasized the reform of factor markets (Land, Labor, Capital)?

Third Generation ReformsSecond Generation ReformsFirst Generation Reforms (1991)Fourth Generation Reforms

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First generation reforms (1991) focused on product markets (liberalization). Second generation reforms focus on factor markets like labor laws, land acquisition, and legal frameworks.

Question 2

The Narasimham Committee II (1998) mainly focused on:

Strengthening the banking system through capital adequacy, asset quality, and prudential norms.Merger of Regional Rural Banks.Nationalization of foreign banks.Establishment of new private banks.

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While Narasimham-I dealt with deregulation, Narasimham-II focused on "Second Generation Reforms" like stricter prudential norms, capital adequacy (CAR), and cleaning up NPAs.

Question 3

The "Second Generation Reforms" in India focus primarily on which of the following areas?

Reforming factor markets (Land, Labor, Capital).Deregulating the product market.Nationalization of banks.Reducing import tariffs only.

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While first-generation reforms (1991) focused on product markets and liberalization, second-generation reforms aim at difficult structural changes in factor markets like labor laws, land acquisition, and legal/judicial reforms.

Question 4

Under the New Industrial Policy 1991, mandatory industrial licensing was abolished for all industries EXCEPT a short list. Which of the following still requires licensing?

AutomobilesCementElectronic Aerospace and Defence EquipmentTextiles

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Industrial licensing is kept only for 5 specific sectors related to security, strategic, and environmental concerns: Electronic Aerospace/Defence, Industrial Explosives, Hazardous Chemicals, Tobacco products, and Alcohol for consumption.

JAIIB Quiz

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