

McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
1. |
International trade increases the welfare of ________________ |
A. | only developed countries |
B. | only exporting countries |
C. | all participating countries |
D. | only importing countries |
Answer» C. all participating countries |
2. |
Ricardian theory assumes that labour is ________________ within the country. |
A. | inefficient |
B. | heterogeneous |
C. | homogeneous |
D. | sufficient |
Answer» C. homogeneous |
3. |
Income terms of trade indicate increased capacity to ________________. |
A. | export |
B. | import |
C. | profit |
D. | investment |
Answer» B. import |
4. |
An offer curve differs from ________________. |
A. | usual demand curve |
B. | usual supply curve |
C. | indifference curve |
D. | usual demand and supply curve |
Answer» D. usual demand and supply curve |
5. |
Utility terms of trade was introduced by ________________. |
A. | jacob viner |
B. | frank taussig |
C. | j. s. mill |
D. | adam smith |
Answer» A. jacob viner |
6. |
When supply of exports is elastic, a country will have ________________ terms of trade. |
A. | unfavorable |
B. | favorable |
C. | income |
D. | different |
Answer» B. favorable |
7. |
Hecksher-Ohlin theory states that the relative factor prices in two countries are determined by ________________. |
A. | labour efficiency |
B. | capital efficiency |
C. | technological developments |
D. | differences in factor endowments |
Answer» D. differences in factor endowments |
8. |
________________ is not an objective of commercial trade policy. |
A. | to determine the rate of interest |
B. | to protect domestic industries from foreign competition |
C. | to preserve foreign exchange reserves |
D. | to maintain favorable balance of payments |
Answer» A. to determine the rate of interest |
9. |
Tariff rate quotas are ________________ |
A. | based on the value of the traded commodity only |
B. | low tariff rate on an initial quantity of import within the quota limit and very high tariff rate on imports above the initial amount |
C. | based on the quantity or volume of the quantity only |
D. | combination of tariffs and quotas |
Answer» B. low tariff rate on an initial quantity of import within the quota limit and very high tariff rate on imports above the initial amount |
10. |
Which of the following is not a NTB? |
A. | voluntary export restrictions |
B. | administrative barriers |
C. | tariff rate quotas |
D. | local content requirement |
Answer» C. tariff rate quotas |
11. |
A free trade area is a trade bloc where ________________ |
A. | countries agree to have a common unified tariff against non-members |
B. | countries agree to reduce or eliminate tariff barriers on selected goods imported from other member nations |
C. | countries agree to reduce or eliminate tariff barriers on all goods imported from other member nations |
D. | all barriers are eliminated to allow free movement of goods, services, capital and labour |
Answer» C. countries agree to reduce or eliminate tariff barriers on all goods imported from other member nations |
12. |
The ________________ was signed to create the EU in 1993. |
A. | treaty of london |
B. | treaty of maastricht |
C. | treaty of lisbon |
D. | treaty of rome |
Answer» B. treaty of maastricht |
13. |
ASEAN was formed in ________________ |
A. | 1967 |
B. | 1945 |
C. | 1999 |
D. | 2000 |
Answer» A. 1967 |
14. |
________________ refers to the alliance of multiple countries pursuing common goals. |
A. | single market |
B. | multilateralism |
C. | customs union |
D. | regionalism |
Answer» B. multilateralism |
15. |
WTO was set up on ________________ |
A. | 31st july, 1995 |
B. | 1st january, 2000 |
C. | 1st june, 1985 |
D. | 1st january, 1995 |
Answer» D. 1st january, 1995 |
16. |
In the past several years, India's net invisibles were in ________________ |
A. | surplus |
B. | deficit |
C. | balance |
D. | unbalance |
Answer» A. surplus |
17. |
Private transfers on India's current account include ________________. |
A. | local withdrawal from nri rupee deposits |
B. | foreign currency deposits |
C. | foreign exchange reserves |
D. | portfolio investment |
Answer» A. local withdrawal from nri rupee deposits |
18. |
The highest authority of WTO is ________________. |
A. | the dispute settlement body |
B. | the ministerial conference |
C. | the trade policy review body |
D. | the general council |
Answer» B. the ministerial conference |
19. |
________________ is not a direct measures to correct BoP disequilibrium. |
A. | tariffs |
B. | devaluation of exchange rate |
C. | import substitution |
D. | quotas |
Answer» B. devaluation of exchange rate |
20. |
Portfolio foreign investment is included in ________________ account of BoP. |
A. | capital |
B. | trade |
C. | debit |
D. | current |
Answer» A. capital |
21. |
Forward market in foreign exchange refers to ________________ market. |
A. | a long run |
B. | a short run |
C. | a spot |
D. | short and long run |
Answer» D. short and long run |
22. |
________________ is not a detect of flexible exchange rate. |
A. | speculation |
B. | structural unemployment |
C. | stability in international monetary system |
D. | discourages investments |
Answer» C. stability in international monetary system |
23. |
The function of foreign exchange market that helps in clearing international transactions is known as ________________. |
A. | speculation |
B. | hedging |
C. | transfer |
D. | credit |
Answer» C. transfer |
24. |
When the demand curve for foreign currency, intersects the supply curve, we get ________________ exchange rate. |
A. | par |
B. | discount |
C. | equilibrium |
D. | premium |
Answer» C. equilibrium |
25. |
________________ of goods results in demand for foreign currency. |
A. | sale in inter-national market |
B. | export |
C. | sale in domestic market |
D. | import |
Answer» D. import |
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