Question

Which of the following measures was adopted in 1991 to stabilise the economy?

(a) Banking sector reforms

(b) Capital market reforms

(C) Control of inflation

(d) Insurance reforms​

Answer 1

Answer:

a) Banking sector reforms is the answer.

Answer 2

The answer is option B. Capital market reforms

Explanation:

• The major policy initiatives taken by the Government were introduced in the budget for the year 1991-92 to fundamentally address the balance of payments problem and the structural rigidities were as follows:

• Fiscal Reforms
• Monetary and Financial Sector Reforms
• Reforms in Capital Markets
• Industrial Policy Reforms
• Trade Policy Reforms
• Promoting Foreign Investment
• Rationalization of Exchange-Rate Policy

• The 1991 economic reforms were mainly focused on the fiscal reforms, and as a result, we have seen a significant boom in those areas that were liberalized.  
• Sectors such as civil aviation and telecom have benefited greatly from de-regulation and reforms.