In the context of economic reforms, 'Disinvestment' refers to:
A. Increase in government investment in PSUs
B. Nationalisation of private companies
C. Sale of government equity in public sector enterprises
D. Complete closure of all PSUs
Answer: Option C
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.
Explanation:
Keynes proposed the liquidity preference theory, which states that the rate of interest is determined by the demand for and supply of money, where demand arises from transactions, precautionary and speculative motives.
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