Topics:
CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books
Foreign Exchange Earning Source
When India imports goods like petroleum, it pays in dollars which are earned from:
- Printing more currency
- Exports — Correct Answer
- Gold reserves only
- Foreign aid only
Explanation:
Correct Answer Explanation
India pays for imports in dollars earned from its exports.
Key Points:
- If imports grow without matching export growth, it leads to balance of payments crisis.
- This was a key factor in the 1991 economic crisis.
📚 About this Topic — CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL
This multiple choice question is from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL to strengthen your preparation.
