McqMate
Chapters
| 201. |
An international trading company of the Government of India _. |
| A. | State Transport Corporation |
| B. | State Service Corporation |
| C. | State Trading Corporation |
| D. | All of the above |
| Answer» C. State Trading Corporation | |
| 202. |
Consular documents include _ _. |
| A. | Certificate of origin |
| B. | Export certificates |
| C. | Uncertified consular invoices |
| D. | Bills of exchange |
| Answer» A. Certificate of origin | |
| 203. |
Trade barriers are often called _ _. |
| A. | Free trade |
| B. | Protection |
| C. | Trade wars |
| D. | Economic integration |
| Answer» B. Protection | |
| 204. |
Redistribution effect is called _ . |
| A. | Revenues effect |
| B. | Consumption effect |
| C. | Productive effect |
| D. | Transfer effect |
| Answer» D. Transfer effect | |
| 205. |
Imposing of tariff, raises domestic prices causing fall in consumption of domestic goods is _ . |
| A. | Protective effect |
| B. | Revenue effect |
| C. | Consumption effect |
| D. | Terms of trade effect |
| Answer» C. Consumption effect | |
| 206. |
_ _ is the World’s largest single market area. |
| A. | European Union |
| B. | India |
| C. | Pakisthan |
| D. | Srilanka |
| Answer» A. European Union | |
| 207. |
At present, European Union consist of _ member countries. |
| A. | 26 |
| B. | 27 |
| C. | 28 |
| D. | None of these above |
| Answer» C. 28 | |
| 208. |
When an economy union involves unifying currency it becomes _ . |
| A. | Customs Union |
| B. | Trade Union |
| C. | Economic and Monetary Union |
| D. | Trade area |
| Answer» C. Economic and Monetary Union | |
| 209. |
_ _ is an official institution of the European Union. |
| A. | European Council |
| B. | European Parliament |
| C. | European Commission |
| D. | European Investment Bank |
| Answer» A. European Council | |
| 210. |
Euro is the official currency for _ _ member countries of European Union. |
| A. | 16 |
| B. | 17 |
| C. | 18 |
| D. | 19 |
| Answer» D. 19 | |
| 211. |
The is the single currency of the European Union. |
| A. | dollar |
| B. | euro |
| C. | yen |
| D. | pound |
| Answer» B. euro | |
| 212. |
_ _ is the second largest currency in the world. |
| A. | Dollar |
| B. | Euro |
| C. | Yen |
| D. | Pound |
| Answer» B. Euro | |
| 213. |
_ _ became an ASEAN dialogue partner in 1995. |
| A. | India |
| B. | Pakisthan |
| C. | Srilanka |
| D. | USA |
| Answer» A. India | |
| 214. |
Look East Policy has now transformed into a _ _. |
| A. | Act European Policy |
| B. | Act East Policy |
| C. | Act West Policy |
| D. | East Asia Policy |
| Answer» B. Act East Policy | |
| 215. |
The referendum for Brexit was held on _ . |
| A. | 2023-06-16 00:00:00 |
| B. | 2023-06-17 00:00:00 |
| C. | 2023-08-17 00:00:00 |
| D. | 2023-06-18 00:00:00 |
| Answer» A. 2023-06-16 00:00:00 | |
| 216. |
ASEAN was formed in . |
| A. | 1947 |
| B. | 1967 |
| C. | 1977 |
| D. | 1987 |
| Answer» A. 1947 | |
| 217. |
_ is a statement of a systematic record of all economic transactions between one country and the rest of the world. |
| A. | Deficit |
| B. | Surplus |
| C. | Balance of payments |
| D. | Budget |
| Answer» C. Balance of payments | |
| 218. |
Pick out the wrong statement. |
| A. | Tariff restricts t |
| B. | Import quotas have a direct effect in reducing imports |
| C. | Voluntary export restraint is an example of tariff barriers. |
| D. | An export subsidy is a government grant given to an export firm |
| Answer» C. Voluntary export restraint is an example of tariff barriers. | |
| 219. |
The consumption effect of tariffs forces consumers to _ _. |
| A. | increase their consumption due to tariffs. |
| B. | pay lower price due to tariffs. |
| C. | reduce their consumption due to tariffs. |
| D. | depend on imports for consumption |
| Answer» C. reduce their consumption due to tariffs. | |
| 220. |
Import embargo is an important retaiatory measure against_ _. |
| A. | dumping |
| B. | exports |
| C. | domestic producer |
| D. | domestic farmers |
| Answer» A. dumping | |
| 221. |
Which of the following Non – Tariff Barriers prevents free movement of capital between countries? |
| A. | preferential government procurement |
| B. | Exchange Controls |
| C. | Domestic subsidie |
| D. | Local content requirement |
| Answer» B. Exchange Controls | |
| 222. |
_ is a measure under which a commodity of a specific volume or value is allowed to be imported in the country. |
| A. | Voluntary Export Restraints |
| B. | Combined duty |
| C. | Import quota |
| D. | Revenue tariff |
| Answer» C. Import quota | |
| 223. |
Which of these are objectives of import quotas? |
| A. | Correcting disequilibrium in the balance of payment |
| B. | To allow dumping |
| C. | To allow speculative activities |
| D. | To allow excess supply in the domestic economy |
| Answer» A. Correcting disequilibrium in the balance of payment | |
| 224. |
In the _ account, only transactions relating to goods are entered. |
| A. | invisible account |
| B. | Capital account |
| C. | trade |
| D. | Current account |
| Answer» C. trade | |
| 225. |
_ means a decline in the rate of exchange of one country in terms of another’s. |
| A. | Deflation |
| B. | Tariff |
| C. | Exchange Depreciation |
| D. | exchang devaluation |
| Answer» C. Exchange Depreciation | |
| 226. |
Restrictions on the use of foreign exchange by the Central bank are called _ . |
| A. | exchange controls |
| B. | Official transfers |
| C. | Foreign exchange reserves |
| D. | LAF |
| Answer» A. exchange controls | |
| 227. |
_ are duties levied on imports. |
| A. | Tariffs |
| B. | Deflation |
| C. | Exchange control |
| D. | Qoutas |
| Answer» A. Tariffs | |
| 228. |
Restrictions imposed on the quantity of imports is _ . |
| A. | Surplus |
| B. | Quotas |
| C. | Balance |
| D. | Tariffs |
| Answer» B. Quotas | |
| 229. |
Balance of payment always _ __. |
| A. | Deficit |
| B. | balances |
| C. | Surplus |
| D. | Equal |
| Answer» B. balances | |
| 230. |
_ term long run disequilibrium as fundamental disequilibrium. |
| A. | Tariff |
| B. | IMF |
| C. | trade |
| D. | WTO |
| Answer» B. IMF | |
| 231. |
WTO replaced _ in 1995. |
| A. | GATT |
| B. | WTO |
| C. | UN |
| D. | UNESCO |
| Answer» A. GATT | |
| 232. |
TRIPs deals with _ . |
| A. | intellectual property rights |
| B. | Foreign investment |
| C. | Foreign aid |
| D. | Agriculture |
| Answer» A. intellectual property rights | |
| 233. |
Protection is made available for _ years for patents. |
| A. | 20 |
| B. | 30 |
| C. | 10 |
| D. | 40 |
| Answer» A. 20 | |
| 234. |
The terms of _ is 50 years. |
| A. | copyright |
| B. | Services |
| C. | patent |
| D. | Trademarks |
| Answer» A. copyright | |
| 235. |
The current account of balance of payment does not include : |
| A. | Balance of visible trade |
| B. | Import of services |
| C. | Unilateral services |
| D. | Foreign investment |
| Answer» D. Foreign investment | |
| 236. |
Pick out the item which is not a part of unilateral transfers. |
| A. | Gifts |
| B. | Grants |
| C. | Loan |
| D. | Donation |
| Answer» C. Loan | |
| 237. |
Donations, grants, gifts and such other payments which do not have counter obligations are known as : |
| A. | Grants |
| B. | Aid |
| C. | Unilateral flows |
| D. | Bilateral flow |
| Answer» C. Unilateral flows | |
| 238. |
If the deficits in a country’s BOP persists for a long time it is a case of : |
| A. | Structural disequilibrium |
| B. | Fundamental disequilibrium |
| C. | Cyclical disequilibrium |
| D. | temporary disequilibrium |
| Answer» B. Fundamental disequilibrium | |
| 239. |
Disequilibrium in the BOP caused by changes in the demand or supply relations of exports or imports or both refer to : |
| A. | Cyclical disequilibrium |
| B. | Short Run disequilibrium |
| C. | Structural disequilibrium |
| D. | Fundamental disequilibrium |
| Answer» C. Structural disequilibrium | |
| 240. |
Which of the following is not a non monetary measure to correct the disequilibrium in BOP ? |
| A. | Tariff |
| B. | Import quotas |
| C. | Export promotion |
| D. | Devaluation |
| Answer» D. Devaluation | |
| 241. |
TRIMS include measures to : |
| A. | Treat foreign investment on par with domestic income |
| B. | Remove quantitative restrictions |
| C. | Treat foreign investment on par with domestic investment |
| D. | Remove qualitative retrictions |
| Answer» C. Treat foreign investment on par with domestic investment | |
| 242. |
Pick out the one which is not true of GATS : |
| A. | Services and service activities are covered under GATS |
| B. | National treatment to members |
| C. | No market access to service supplier’s |
| D. | No discrimination between service suppliers |
| Answer» C. No market access to service supplier’s | |
| 243. |
Pick out the feature which is not true of the Agreement on Agriculture. |
| A. | Reduce domestic subsidies |
| B. | reduce export subsidies |
| C. | Increase tariffs |
| D. | Increase trade in agricultural goods |
| Answer» C. Increase tariffs | |
| 244. |
In balance of payment account, all goods exported and imported are recorded in _ . |
| A. | Capital account |
| B. | Merchandise account |
| C. | Invisible account |
| D. | Current account |
| Answer» C. Invisible account | |
| 245. |
Gifts and charities account are also known as : |
| A. | Export |
| B. | Unilateral transfer |
| C. | Import |
| D. | Long–term borrowing |
| Answer» B. Unilateral transfer | |
| 246. |
In BOP, total receipts must be equal to total _ . |
| A. | payment |
| B. | deficit |
| C. | income |
| D. | revenue |
| Answer» A. payment | |
| 247. |
Reducing the value of domestic currency in term of foreign currency : |
| A. | Deflation |
| B. | Exchange control |
| C. | Tariff |
| D. | Devaluation |
| Answer» D. Devaluation | |
| 248. |
The current account in the balance of payments _ . |
| A. | is a total of all the visible items of trade |
| B. | includes merchandise trade and services |
| C. | always shows a surplus |
| D. | includes autonomous and accommodating flows |
| Answer» B. includes merchandise trade and services | |
| 249. |
Good performance on _ has helped India to improve its current account balance in recent times. |
| A. | trade account |
| B. | invisible account |
| C. | Capital account |
| D. | reserves account |
| Answer» B. invisible account | |
| 250. |
After covering deficits on current account, excess capital account receipts are added to _. |
| A. | IMF account |
| B. | Official transfers |
| C. | Foreign exchange reserves |
| D. | Bank capital |
| Answer» C. Foreign exchange reserves | |
| 251. |
Reducing public expenditure to correct BOP disequilibrium is a _ __ measure. |
| A. | Monetary |
| B. | Fiscal |
| C. | Special |
| D. | Commercial |
| Answer» B. Fiscal | |
| 252. |
_ is not a cause of deficit in balance of payments. |
| A. | increase in import |
| B. | fall in exports |
| C. | capital outflow |
| D. | capital inflows |
| Answer» D. capital inflows | |
| 253. |
Devaluation of a currency is brought about by the _ . |
| A. | World Bank |
| B. | Asian Development Bank |
| C. | International Finance Corporation |
| D. | Government |
| Answer» D. Government | |
| 254. |
When total exports are more than total imports then current account of balance of payment is in _ . |
| A. | Deficit |
| B. | Balance |
| C. | Surplus |
| D. | Unequal |
| Answer» C. Surplus | |
| 255. |
_ _ disequilibrium is chronic in nature. |
| A. | Cyclical |
| B. | Fundamental |
| C. | Structural |
| D. | Monetary |
| Answer» B. Fundamental | |
| 256. |
Expenditure switching policy is also known as _ _ . |
| A. | Devaluation |
| B. | Revaluation |
| C. | Appreciation |
| D. | Depriciation |
| Answer» A. Devaluation | |
| 257. |
_ term long run disequilibrium as fundamental disequilibrium . |
| A. | IMF |
| B. | UN |
| C. | WTO |
| D. | World Bank |
| Answer» A. IMF | |
| 258. |
WTO replaced GATT and came into existence on |
| A. | 1st January 1957 |
| B. | 1st January 1991 |
| C. | 1st January 1995 |
| D. | 1st January 1996 |
| Answer» B. 1st January 1991 | |
| 259. |
TRIPs stand for |
| A. | Trade Related Investment Property Rights |
| B. | Trade Related Investment Public Rights |
| C. | Trade Related Intellectual Property Rights |
| D. | Trade Related Investment in services |
| Answer» C. Trade Related Intellectual Property Rights | |
| 260. |
Under _ the foreign investors will be given same rights as the national investor in the matter of investment. |
| A. | TRIPs |
| B. | TRIMs |
| C. | GATs |
| D. | AoA |
| Answer» B. TRIMs | |
| 261. |
GATs deals with trade in _ . |
| A. | Services |
| B. | patent |
| C. | copyright |
| D. | trademarks |
| Answer» A. Services | |
| 262. |
TRIMs deals with _ . |
| A. | Foreign investment |
| B. | Foreign aid |
| C. | Services |
| D. | Goods |
| Answer» A. Foreign investment | |
| 263. |
_ agreement deals in trade in services |
| A. | TRIMs |
| B. | TRIPs |
| C. | GATs |
| D. | UNCTAD |
| Answer» C. GATs | |
| 264. |
The WTO agreements cover _ . |
| A. | TRIPs |
| B. | IMF |
| C. | UNCTAD |
| D. | ASEAN |
| Answer» A. TRIPs | |
| 265. |
WTO promote _ trade. |
| A. | bilateral |
| B. | multilateral |
| C. | unilateral |
| D. | restricted |
| Answer» B. multilateral | |
| 266. |
The only international organisation dealing with the global rules of trade between nations. |
| A. | WTO |
| B. | UN |
| C. | IMF |
| D. | World bank |
| Answer» A. WTO | |
| 267. |
Along with the world bank and WTO is the third economic pillar of world-wide dimensions. |
| A. | International eco |
| B. | International Monetar |
| C. | International Develo |
| D. | International funding or |
| Answer» B. International Monetar | |
| 268. |
TRIPS (trade-related aspects of intellectual property rights) agreement is administered by |
| A. | world bank |
| B. | united nations organiz |
| C. | World trade organiz |
| D. | United nations conferen |
| Answer» C. World trade organiz | |
| 269. |
Who is most recently appointed the Ambassador & Permanent Represantative of india to WTO? |
| A. | JS Deepak |
| B. | TS Deepak |
| C. | Anwar Hussain Shai |
| D. | Brajendra Navnit |
| Answer» D. Brajendra Navnit | |
| 270. |
Which of the institutions is not a part of the world bank community? |
| A. | IFC |
| B. | IDA |
| C. | WTO |
| D. | IBRD |
| Answer» C. WTO | |
| 271. |
Which of the following categories of agricultural subsidies are allowed under WTO? |
| A. | Green box |
| B. | Blue box |
| C. | Red box |
| D. | Amber box |
| Answer» A. Green box | |
| 272. |
The declaration recognised that the TRIPs agreement should protect public health. |
| A. | Brazil |
| B. | Doha |
| C. | Bandung |
| D. | Singapore |
| Answer» B. Doha | |
| 273. |
TRIMs deals with |
| A. | Foreign investme |
| B. | Foreign aid |
| C. | Services |
| D. | Goods |
| Answer» A. Foreign investme | |
| 274. |
_ refers to the rate at which the transaction take place at a future date. |
| A. | Forward exchange rate |
| B. | Arbitrage |
| C. | Spot exchange rate |
| D. | Hedging |
| Answer» A. Forward exchange rate | |
| 275. |
_ refers to the process of buying and selling a foreign currency in two different market at same time. |
| A. | Arbitrage |
| B. | Speculation |
| C. | Spot exchange rate |
| D. | Hedging |
| Answer» A. Arbitrage | |
| 276. |
Transactions in the foreign exchange market are carried out are termed as _. |
| A. | fixed rate |
| B. | forward rate |
| C. | exchange rate |
| D. | Hedging |
| Answer» C. exchange rate | |
| 277. |
Demand for foreign exchange varies _ with the exchange rates. |
| A. | Direct |
| B. | Negative |
| C. | inversely |
| D. | positive |
| Answer» C. inversely | |
| 278. |
When supply of foreign exchange is increased given the demand for foreign exchange, the rate of exchange _. |
| A. | decrease |
| B. | increases |
| C. | Direct |
| D. | upward |
| Answer» A. decrease | |
| 279. |
When demand for foreign exchange increases, the exchange rate _. |
| A. | increases |
| B. | inversely |
| C. | decrease |
| D. | unrelated |
| Answer» A. increases | |
| 280. |
The relative version is considered to be _ to absolute version. |
| A. | superior |
| B. | Gustav Cassel |
| C. | selection of index numbers |
| D. | inferior |
| Answer» A. superior | |
| 281. |
The relative version of the PPP theory is propounded by _. |
| A. | Cassel |
| B. | Adam Smith |
| C. | J.S.Mill |
| D. | Alfred Marshall |
| Answer» A. Cassel | |
| 282. |
According to _ theory, the exchange rate between two currencies is determined by their purchasing power. |
| A. | Purchasing Power Parity |
| B. | Balance of payment theory |
| C. | Mint parity theory |
| D. | Comparative advantage theory |
| Answer» A. Purchasing Power Parity | |
| 283. |
The -----------is the largest market in the world. |
| A. | foreign exchange market |
| B. | NSE |
| C. | BSE |
| D. | NASDAQ |
| Answer» A. foreign exchange market | |
| 284. |
The countries of the world are following the exchange rate system. |
| A. | fixed |
| B. | flexible |
| C. | restrictive |
| D. | strict |
| Answer» B. flexible | |
| 285. |
_ _ is a feature of the foreign exchange market which enables an investor to earn high returns. |
| A. | cost |
| B. | Leverage |
| C. | revenue |
| D. | profit |
| Answer» B. Leverage | |
| 286. |
_has enabled faster growth of the foreign exchange market. |
| A. | Technology |
| B. | Leverage |
| C. | Internaltrade |
| D. | exchange rate |
| Answer» A. Technology | |
| 287. |
__ function refer to the function of converting one currency into another. |
| A. | Arbitrage |
| B. | booking |
| C. | asking |
| D. | hedging |
| Answer» D. hedging | |
| 288. |
_ are authorized to deal in foreign exchange transactions. |
| A. | Moneylenders |
| B. | Money launderers |
| C. | Commercial banks |
| D. | RRBs |
| Answer» C. Commercial banks | |
| 289. |
Investment in financial assets like shares or bonds abroad will _- the demand for foreign exchange. |
| A. | inceae |
| B. | decrease |
| C. | keep constant |
| D. | fluctuate |
| Answer» A. inceae | |
| 290. |
A _ country requires more foreign exchange. |
| A. | developing |
| B. | developed |
| C. | hermit nation |
| D. | restrictive |
| Answer» A. developing | |
| 291. |
Services rendered by the domestic country to foreign counter parts increase the _ of foreign exchange. |
| A. | supply |
| B. | demand |
| C. | manufacture |
| D. | produce |
| Answer» A. supply | |
| 292. |
Unilateral payments received _ _ the supply of foreign exchange. |
| A. | increase |
| B. | decrease |
| C. | does not change |
| D. | drastically changes |
| Answer» A. increase | |
| 293. |
_ rate variations can affect the equilibrium exchange rate. |
| A. | Birth |
| B. | death |
| C. | inflation |
| D. | production |
| Answer» C. inflation | |
| 294. |
Interest rate differentials the exchange rate. |
| A. | affect |
| B. | tandardised |
| C. | localise |
| D. | neutralise |
| Answer» A. affect | |
| 295. |
The degree of _ achieved affect the exchange rate. |
| A. | education |
| B. | health |
| C. | growth |
| D. | currency |
| Answer» C. growth | |
| 296. |
The purchasing power parity theory the difference in the quality of goods. |
| A. | considers |
| B. | appreciates |
| C. | ignores |
| D. | values |
| Answer» C. ignores | |
| 297. |
The PPP theory _ capital transfers. |
| A. | considers |
| B. | appreciates |
| C. | ignores |
| D. | values |
| Answer» C. ignores | |
| 298. |
The _rate is determined by the demand for and supply of a currency. |
| A. | spot |
| B. | forward rate |
| C. | option |
| D. | futures |
| Answer» A. spot | |
| 299. |
The differencbetween bid price and ask price s the _ |
| A. | loss |
| B. | profit |
| C. | value |
| D. | difference |
| Answer» B. profit | |
| 300. |
_ exchange rate may be either at a premium or discount or at par. |
| A. | spot |
| B. | forward |
| C. | current |
| D. | option |
| Answer» B. forward | |
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