Removal of restrictions on trade and financial flow.
Increasing taxation on foreign companies.
Show Solution
The Correct Option isC
Solution and Explanation
Step 1: Recall the meaning.
Liberalise means to make freer. An economy is liberalised when the government loosens its grip on trade, investment and finance.
Step 2: Sort the options by direction.
Options 1 and 4 add state control or barriers. Option 2 is a welfare scheme with another purpose. Only option 3 makes things freer.
Step 3: Match with the passage.
The passage describes the removal of the rules that regulated trade and finance, which is the wording of option 3.
Step 4: Choose.
The best description is option 3.
Step 5: Why the other options fail.
Option 1 says: Creation of new government-owned industries.. This does not fit the idea we settled on, so it cannot be the answer.
Option 2 says: Expansion of rural employment guarantees.. This does not fit the idea we settled on, so it cannot be the answer.
Option 4 says: Increasing taxation on foreign companies.. This does not fit the idea we settled on, so it cannot be the answer.
Step 6: Quick check.
Read the chosen option again in full: Removal of restrictions on trade and financial flow.. It agrees with the facts above, and each of the other three options clashes with them. So the answer stays the same after this second look.
Final Answer:
Option 3 is the best description.
\[ \boxed{\text{Option 3}} \]
