In the context of economic reforms, 'Disinvestment' refers to: MCQ with Answer and Explanation

In the context of economic reforms, 'Disinvestment' refers to:
A. Sale of government equity in public sector enterprises
B. Complete closure of all PSUs
C. Nationalisation of private companies
D. Increase in government investment in PSUs
Answer: Option A
Solution (By JKSSB Mock Tests)
Disinvestment involves the sale of government-held shares in public sector enterprises to private entities or the public, reducing government ownership.

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Practice More Economy Set 1 Questions

Question #1
The 'Composition Scheme' under GST does not allow:
A. payment of tax
B. input tax credit
C. filing of returns
D. collection of tax from customers

Correct Answer: Option B


Explanation:
Composition dealers cannot claim input tax credit.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Goods and Services Tax' on ice cream is:
A. 18%
B. 28%
C. 5%
D. 12%

Correct Answer: Option A


Explanation:
Ice cream attracts 18% GST.

This question belongs to: Economy GK Economy Set 1
Question #3
Disinvestment in a public sector enterprise is classified in the government budget as:
A. capital receipt
B. revenue expenditure
C. transfer payment
D. revenue receipt

Correct Answer: Option A


Explanation:
Disinvestment proceeds are capital receipts as they arise from sale of assets.

This question belongs to: Economy GK Economy Set 1