Which of the Following Statements About Economic Liberalization in India

question 8

Multiple Choice

Which of the following statements about economic liberalization in India is INCORRECT?

• A) It began in the 1980s and intensified in the 1990s.
• B) It occurred because the country's political and economic elite were concerned with India's growth relative to other Asian countries.
• C) It required the borrowing of foreign capital, thus increasing the country's level of debt.
• D) It has helped to integrate the country into the world economy.
• E) It has helped to significantly expand the country's agricultural sector.

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Definitions:

Call Contract

An agreement that gives the option buyer the right, but not the obligation, to buy a specified quantity of an asset at a predetermined price within a certain time frame.

Put Contract

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time.

Writer of a Call Option

The individual or entity that sells a call option and has the obligation to sell the underlying asset at the set strike price if the option is exercised.

Buyer of a Put Option

An investor who acquires the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a set time frame.