McqMate
Chapters
1. |
____ is a systematic record of all the economic transaction between one country and rest of the would: |
A. | Balance of Trade |
B. | Balance of Transaction |
C. | Budget |
D. | Balance of payments |
Answer» D. Balance of payments |
2. |
As per IMF balance of payment manual, import export of goods should be presented on: |
A. | FOB basis |
B. | FOR basis |
C. | CIF basis |
D. | All of these |
Answer» A. FOB basis |
3. |
OECD stands for: |
A. | Organization for export co-operation & development |
B. | Organization for economic commission & development |
C. | Organization for export commission & development |
D. | Organization for economic co-operation & development |
Answer» D. Organization for economic co-operation & development |
4. |
India has witnessed a surplus for the third successive year in which account of the balance of payment? |
A. | Trade account of BOP |
B. | Current account of BOP |
C. | Both (a) and (b) |
D. | None of these |
Answer» B. Current account of BOP |
5. |
In India which authority takes the purview of import & export: |
A. | EXIM |
B. | RBI |
C. | Ministry of Finance |
D. | Ministry of commerce |
Answer» D. Ministry of commerce |
6. |
Devaluation means: |
A. | To reduce the value of home currency in other currency |
B. | To appreciate the value of home currency |
C. | To increase the value of home currency in other currency. |
D. | To constant the value of home currency. |
Answer» A. To reduce the value of home currency in other currency |
7. |
_______ is a systematic record of all transactions of a country in a year. |
A. | Balance of payment |
B. | Balance of Trade |
C. | Current Account of Balance of Payment |
D. | None. |
Answer» A. Balance of payment |
8. |
The current account of Balance of Payment includes trade balance and _______. |
A. | Settlement account |
B. | Capital account |
C. | Invisibles |
D. | Errors and omissions. |
Answer» C. Invisibles |
9. |
Balance of payment deficit can be removed through: |
A. | Devaluation of currency |
B. | Vigorous export promotion |
C. | Import substitution |
D. | All of the above. |
Answer» A. Devaluation of currency |
10. |
The difference between the value of a nations visible exports and visible import is. |
A. | Balance of trade. |
B. | Balance of payments. |
C. | Balance of current Account. |
D. | Balance of Capital Account. |
Answer» A. Balance of trade. |
11. |
Which of the following is NOT a restriction to international trade? |
A. | Quotas. |
B. | GATT. |
C. | Subsidies. |
D. | Exchange controls. |
Answer» B. GATT. |
12. |
FDI stands for: |
A. | foreign direct investment. |
B. | foreign domestic investment. |
C. | foreign direct intervention. |
D. | foreign direct intermediation |
Answer» A. foreign direct investment. |
13. |
The balance of payments of a country records flows of money from: |
A. | imports and exports and investment flows. |
B. | imports and exports and investments flow and speculative flows. |
C. | imports and exports. |
D. | imports and exports and domestic demand. |
Answer» B. imports and exports and investments flow and speculative flows. |
14. |
Trade between two countries can be useful if cost ratios of goods are: |
A. | Undetermined |
B. | Decreasing |
C. | Equal |
D. | Different |
Answer» D. Different |
15. |
The term Euro Currency market refers to |
A. | The international foreign exchange market |
B. | The market where the borrowing and lending of currencies take place outside the country of issue |
C. | The countries which have adopted Euro as their currency |
D. | The market in which Euro is exchanged for other currencies |
Answer» B. The market where the borrowing and lending of currencies take place outside the country of issue |
16. |
Which of the following theories suggests that firms seek to penetrate new markets over time? |
A. | Imperfect Market Theory |
B. | Product cycle theory |
C. | Theory of Comparative Advantage |
D. | None of the above |
Answer» B. Product cycle theory |
17. |
Dumping refers to: |
A. | Reducing tariffs |
B. | Sale of goods abroad at low a price, below their cost and price in home market |
C. | Buying goods at low prices abroad and selling at higher prices locally |
D. | Expensive goods selling for low prices |
Answer» B. Sale of goods abroad at low a price, below their cost and price in home market |
18. |
International trade and domestic trade differ because of: |
A. | Different government policies |
B. | Immobility of factors |
C. | Trade restrictions |
D. | All of the above |
Answer» D. All of the above |
19. |
The margin for a currency future should be maintained with the clearing house by |
A. | The seller |
B. | The buyer |
C. | Either the buyer or the seller as per the agreement between them |
D. | Both the buyer and the seller |
Answer» D. Both the buyer and the seller |
20. |
The following statement with respect to currency option is wrong |
A. | Foreign currency- Rupee option is available in India |
B. | An American option can be executed on any day during its currency |
C. | Put option gives the buyer the right to sell the foreign currency |
D. | Call option will be used by exporters |
Answer» D. Call option will be used by exporters |
21. |
Govt. policy about exports and imports is called: |
A. | Commercial policy |
B. | Fiscal policy |
C. | Monetary policy |
D. | Finance policy |
Answer» A. Commercial policy |
22. |
Which of the following is international trade? |
A. | Trade between countries |
B. | Trade between regions |
C. | Trade between provinces |
D. | Both (b) and (c) |
Answer» A. Trade between countries |
23. |
Market in which currencies buy and sell and their prices settle on is called the |
A. | International bond market International capital market |
B. | Foreign exchange market |
C. | Eurocurrency market |
D. | none |
Answer» C. Eurocurrency market |
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