McqMate
| 101. |
. A country has a negative balance of trade. It means the balance of payments on current account |
| A. | Should also be negative |
| B. | Should be positive |
| C. | May be positive or negative |
| D. | Should be same as balance of trade |
| Answer» C. May be positive or negative | |
| 102. |
The Foreign Trade policy was first introduced in the year: |
| A. | 1981. |
| B. | 1947. |
| C. | 1992. |
| D. | 2000. |
| Answer» C. 1992. | |
| 103. |
The present share of India’s trade in the world trade is |
| A. | less than 1 per cent. |
| B. | 1.2 per cent. |
| C. | 1.5 per cent. |
| D. | 1.8 per cent. |
| Answer» C. 1.5 per cent. | |
| 104. |
The apex body of the Foreign Trade is: |
| A. | The Central Government. |
| B. | The State Government. |
| C. | The Ministry of Commerce. |
| D. | All the above. |
| Answer» C. The Ministry of Commerce. | |
| 105. |
The tenure of the Foreign Trade policy is |
| A. | 3 years. |
| B. | 5 years. |
| C. | 1 year. |
| D. | 7 years. |
| Answer» B. 5 years. | |
| 106. |
The geographically distributed area or zone where the economic laws are more liberal as compared to other parts of the country is called |
| A. | EOU |
| B. | SEZ. |
| C. | AEZ. |
| D. | FTZ. |
| Answer» B. SEZ. | |
| 107. |
Islamic nations follow |
| A. | Common law |
| B. | Civil law. |
| C. | Criminal Law. |
| D. | Religious law. |
| Answer» D. Religious law. | |
| 108. |
What does CCIE stand for? |
| A. | Chief Controller of Imports and Exports. |
| B. | Central Cottage Industries Exports. |
| C. | Control on Cotton Imports and Exports. |
| D. | Commissioner of Central Imports and Exports. |
| Answer» A. Chief Controller of Imports and Exports. | |
| 109. |
The total value of the products and services marketed by a nation is called: |
| A. | Gross Domestic Product. |
| B. | Gross National Product. |
| C. | National Income |
| D. | Per capita income. |
| Answer» D. Per capita income. | |
| 110. |
To what extent is FDI permitted in the FTWZ? |
| A. | 50% |
| B. | 60% |
| C. | 75% |
| D. | 100% |
| Answer» A. 50% | |
| 111. |
The WTO Agreement related to investment measures is: |
| A. | TRIPS. |
| B. | TRIMS. |
| C. | GATS. |
| D. | TCA. |
| Answer» D. TCA. | |
| 112. |
The major players in the foreign exchange market are |
| A. | commercial banks. |
| B. | corporate. |
| C. | exchange brokers. |
| D. | central bank of the country and the Central Government |
| Answer» C. exchange brokers. | |
| 113. |
Derivatives can be used by an exporter for managing |
| A. | currency risk. |
| B. | cargo risk. |
| C. | credit risk. |
| D. | business risk. |
| Answer» C. credit risk. | |
| 114. |
The forward market is especially well-suited to offer hedging protection against |
| A. | translation risk exposure. |
| B. | transactions risk exposure. |
| C. | political risk exposure. |
| D. | taxation |
| Answer» C. political risk exposure. | |
| 115. |
The euro is the name for |
| A. | a currency deposited outside its country of origin. |
| B. | a bond sold internationally outside of the country in whose currency |
| C. | the bond is denominated |
| D. | a common European currency. |
| Answer» B. a bond sold internationally outside of the country in whose currency | |
| 116. |
Which of the following are international financial considerations faced by both small and large MNEs? |
| A. | Currency systems |
| B. | Tax systems |
| C. | Interest rates |
| D. | Exchange rate |
| Answer» C. Interest rates | |
| 117. |
Strategies in which funds are moved from one MNE operation to another are called |
| A. | funds positioning techniques |
| B. | arm's length techniques. |
| C. | fronting techniques. |
| D. | subsidiary flows. |
| Answer» A. funds positioning techniques | |
| 118. |
Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called |
| A. | commodity markets. |
| B. | fund-available markets. |
| C. | derivative exchange markets. |
| D. | financial markets. |
| Answer» B. fund-available markets. | |
| 119. |
The bond markets are important because |
| A. | they are easily the most widely followed financial markets in the United States. |
| B. | they are the markets where foreign exchange rates are determined. |
| C. | they are the markets where interest rates are determin |
| Answer» B. they are the markets where foreign exchange rates are determined. | |
| 120. |
Most FDI and trade are made by: |
| A. | China, Japan and the US. |
| B. | The US, the EU, and Japan |
| C. | North America |
| D. | ASEAN countries |
| Answer» D. ASEAN countries | |
| 121. |
The EU is the major provider of FDI for: |
| A. | Eastern Europe. |
| B. | South America. |
| C. | developing Asian countries |
| D. | all of these regions. |
| Answer» C. developing Asian countries | |
| 122. |
Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called |
| A. | commodity markets. |
| B. | fund-available markets. |
| C. | derivative exchange markets. |
| D. | financial markets. |
| Answer» A. commodity markets. | |
| 123. |
Increasing interest rates |
| A. | discourage corporate investments. |
| B. | . discourage individuals from saving. |
| C. | encourage corporate expansion. |
| D. | encourage corporate borrowing. |
| Answer» D. encourage corporate borrowing. | |
| 124. |
Which of the following is not considered a unilateral transfer? |
| A. | foreign aid from one government to another |
| B. | income earned from foreign investments |
| C. | personal gifts to friends in foreign countries |
| D. | donations to foreign countries from non-government |
| Answer» A. foreign aid from one government to another | |
| 125. |
An increase in the current account deficit will place _______ pressure on the home currency value, other things equal |
| A. | upward. |
| B. | downward |
| C. | no |
| D. | upward or downward |
| Answer» D. upward or downward | |
| 126. |
Which of the following would likely have the least direct influence on a country's current account? |
| A. | Inflation. |
| B. | National income. |
| C. | Exchange rates |
| D. | A tax on income earned from foreign stocks |
| Answer» A. Inflation. | |
| 127. |
The primary component of the current account is the: |
| A. | balance of trade. |
| B. | balance of money market flows |
| C. | balance of capital market flows |
| D. | unilateral transfers. |
| Answer» B. balance of money market flows | |
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