SSC
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following sentences would best describe the Indian economy in 1991?
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High inflation, low foreign exchange reserve
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Low inflation, low foreign exchange reserves
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High current account deficit, fiscal surplus
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Current account surplus, huge fiscal deficit
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Explanation:
Detailed explanation-1: -The correct option is A) High inflation, low foreign exchange reserves.
Detailed explanation-2: -During the crisis year of 1991-92, inflation was 13.7 per cent.
Detailed explanation-3: -In addition, the 1991 crisis in India is believed to have been caused mainly by high fiscal deficits, the loss of confidence in the government, and mounting current account deficits.
Detailed explanation-4: -Balance of Payment Crisis (1991), India. India faced the Balance of Payment crisis in 1991 due to huge macroeconomic imbalance. Balance of Payment (BoP) Crisis is also called currency crisis.
There is 1 question to complete.