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Read the given text… (Class 12 Economics SQP 2025-26, Q18)

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EconomicsCBSE Class 12 · Sample paper, session 2025-26 · 1 mark · MCQ

CBSE Class 12 Economics sample paper 2025-26: question 18

From the official CBSE sample question paper for 2025-26, section B, question 18, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q18 · 1 mark · MCQCompetency-basedLiberalisation, Privatisation and Globalisation: An Appraisal

Read the given text carefully:
“The Government has now decided to further promote the development of mutual funds by throwing the field open to the private sector and joint sector mutual funds. In order to safeguard the interests of the investing public, and to encourage a healthy growth of the capital markets, a comprehensive set of guidelines is being evolved for the operation of all mutual funds.”
Source: https://www.indiabudget.gov.in/doc/bspeech/bs199192.pdf (Budget 1991-92 Speech of Shri Manmohan Singh Minister of Finance)
Identify the sector under which the aforesaid reform was introduced and choose the correct option.

  1. (A)Industrial
  2. (B)Financial
  3. (C)Tax
  4. (D)Foreign Trade

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

Open one hint at a time and try again before the next.

Hint 1

Mutual funds and capital markets deal with what?

Hint 2

Banks, stock markets and mutual funds form one sector.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Opening mutual funds to the private and joint sectors and framing guidelines to protect investors and develop capital markets are reforms of the financial system.

  2. So the reform belongs to the financial sector reforms of 1991. Option (B).

    1 mark

Answer: (B) Financial

Where the marks are

  • Mutual funds and capital markets: financial sector (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Liberalisation, Privatisation and Globalisation: An Appraisal, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2025-26: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.