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

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.

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Practice More Economy Set 1 Questions

Question #1
The 'overdraft' facility is typically associated with:
A. credit cards
B. fixed deposits
C. drawing more than the balance in a current account
D. insurance

Correct Answer: Option C


Explanation:
An overdraft allows a customer to draw more than the available balance in a current account.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Agricultural Census' in India is conducted by the Ministry of Agriculture and Farmers Welfare every how many years?
A. 5 years
B. 3 years
C. 2 years
D. 10 years

Correct Answer: Option A


Explanation:
The Agricultural Census is conducted every five years.

This question belongs to: Economy GK Economy Set 1
Question #3
The concept of 'Liquidity Preference' theory of interest was given by:
A. Classical economists
B. John Maynard Keynes
C. Knut Wicksell
D. Irving Fisher

Correct Answer: Option B


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.

This question belongs to: Economy GK Economy Set 1