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“In 1991, as an… (Class 12 Economics SQP 2026-27, Q24)

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EconomicsCBSE Class 12 · Sample paper, session 2026-27 · 1 mark · MCQ

CBSE Class 12 Economics sample paper 2026-27: question 24

From the official CBSE sample question paper for 2026-27, section B, question 24, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q24 · 1 mark · MCQLiberalisation, Privatisation and Globalisation: An Appraisal

“In 1991, as an immediate measure to resolve the balance of payments crisis, the rupee was devalued against foreign currencies.”
Identify the liberalisation reform indicated in the aforesaid statement. (Choose the correct option)

  1. (A)Industrial Sector
  2. (B)Tax
  3. (C)Foreign Exchange
  4. (D)Trade and Investment Policy

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

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

Hint 1

Which market sets the value of the rupee?

Hint 2

Recall the categories of the 1991 reforms.

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. Devaluing the rupee in 1991 changed the value of the rupee against foreign currencies to resolve the BoP crisis.

  2. This is a foreign exchange reform (later followed by market-determined exchange rates). Option (C).

    1 mark

Answer: (C) Foreign Exchange

Where the marks are

  • Rupee devaluation is a foreign exchange reform (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 2026-27: 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.