McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Economics (CBCS) .
Chapters
| 1. |
The Indian rupee was made a freely convertible currency on current account since the year |
| A. | 1981 |
| B. | 1991 |
| C. | 1994 |
| D. | 2004 |
| Answer» C. 1994 | |
| 2. |
Which of the following statements about the direction of India’s foreign trade is correct? |
| A. | The share of Asia and ASEAN in total trade has increased significantly |
| B. | The share of Asia and ASEAN in total trade has decreased significantly |
| C. | The share of Asia and ASEAN remain constant over the years |
| D. | The share of Asia and ASEAN is highly fluctuating |
| Answer» A. The share of Asia and ASEAN in total trade has increased significantly | |
| 3. |
NRI deposits are |
| A. | Major source of capital inflows into India |
| B. | Not a source of capital inflows into India |
| C. | Negligible source of capital inflows into India |
| D. | None of the above |
| Answer» A. Major source of capital inflows into India | |
| 4. |
India’s top import item is |
| A. | Coal |
| B. | Gold |
| C. | Fertilizer |
| D. | Crude oil |
| Answer» D. Crude oil | |
| 5. |
India’s top export item is/are |
| A. | Mineral, fuels, oils, etc |
| B. | Gold |
| C. | Precious or semi-precious stones |
| D. | Fertilizers |
| Answer» A. Mineral, fuels, oils, etc | |
| 6. |
The most important item of import for India in terms of value is |
| A. | Mobile handset |
| B. | POL |
| C. | Gold |
| D. | Electronic goods |
| Answer» B. POL | |
| 7. |
The biggest exporter of goods to India during 2018-190 is |
| A. | USA |
| B. | UAE |
| C. | China |
| D. | Japan |
| Answer» C. China | |
| 8. |
The biggest trading partner of India is |
| A. | USA |
| B. | UAE |
| C. | China |
| D. | Saudi Arabia |
| Answer» C. China | |
| 9. |
Since the inception of planning era in 1951, India has been facing the problem of |
| A. | Trade deficit |
| B. | Current account deficit |
| C. | Both (a) and (b |
| D. | None of the above |
| Answer» C. Both (a) and (b | |
| 10. |
To make the exchange rate more realistic and to encourage exports and discourage imports, the Rupee was devalued in |
| A. | 1991 |
| B. | 1992 |
| C. | 1996 |
| D. | 1998 |
| Answer» A. 1991 | |
| 11. |
The trade deficit India experienced in 1990-91 was mainly due to |
| A. | High growth rate of exports |
| B. | High growth rate of imports |
| C. | High growth rate of population |
| D. | None of the above |
| Answer» B. High growth rate of imports | |
| 12. |
The terms of trade measures |
| A. | The terms of exchange between a unit of import and a unit of export |
| B. | The terms of exchange between a unit of one currency with a unit of other currencies |
| C. | The terms of exchange between a unit of one’s commodity with a unit of other commodities |
| D. | None of the above |
| Answer» A. The terms of exchange between a unit of import and a unit of export | |
| 13. |
Under Liberalized Exchange Rate Management Scheme, how much is the receipts on current account could be converted freely into rupees at market determined exchange rate? |
| A. | 30 % |
| B. | 40 % |
| C. | 50 % |
| D. | 60 % |
| Answer» D. 60 % | |
| 14. |
Rupee was made convertible for all trade in merchandise in |
| A. | March 1991 |
| B. | March 1992 |
| C. | March 1993 |
| D. | March 1994 |
| Answer» C. March 1993 | |
| 15. |
Rupee is non-convertible in |
| A. | Current account |
| B. | Capital account |
| C. | Both (a) and (b |
| D. | None of the above |
| Answer» B. Capital account | |
| 16. |
Which of the following is not a part of capital account? |
| A. | Lending to foreign countries |
| B. | Direct investments in foreign countries |
| C. | Transfer payments |
| D. | None of the above |
| Answer» C. Transfer payments | |
| 17. |
The principal reasons for the sluggishness of exports during 1980s was |
| A. | Domestic supply constraints |
| B. | Domestic demand constraints |
| C. | International supply constraints |
| D. | International demand constraints |
| Answer» A. Domestic supply constraints | |
| 18. |
The overall exports of India (merchandise and service) during April-May 2019-20 are estimated to have a positive growth over the same period last year is |
| A. | 2.32 % |
| B. | 3.32% |
| C. | 4.32% |
| D. | 5.32% |
| Answer» C. 4.32% | |
| 19. |
Which of the following is an export item/items that shows a positive growth in May 2019? |
| A. | Fertilizers |
| B. | Vegetable oils |
| C. | Transport equipment |
| D. | Drugs & Pharmaceutical |
| Answer» D. Drugs & Pharmaceutical | |
| 20. |
Which of the following an import item/items that shows a negative growth in May 2019? |
| A. | Vegetable oils |
| B. | Drugs & Pharmaceutical |
| C. | Engineering goods |
| D. | Electronic goods |
| Answer» A. Vegetable oils | |
| 21. |
As per the latest press release by the RBI dated 14th June, 2019, exports in April 2019 registered a positive growth of |
| A. | 2.84% |
| B. | 3.84 % |
| C. | 4.84 % |
| D. | 5.84% |
| Answer» A. 2.84% | |
| 22. |
As per the latest press release by the RBI dated 14th June, 2019, imports in April 2019 registered a positive growth of |
| A. | 2.46 % |
| B. | 3.46 % |
| C. | 4.46 % |
| D. | 5.46 % |
| Answer» C. 4.46 % | |
| 23. |
According to Exports data during 2011-12 (April-June), country with the largest importer of Indian goods was |
| A. | UAE |
| B. | China |
| C. | Indonesia |
| D. | Europe |
| Answer» A. UAE | |
| 24. |
The widening of the Current Account Deficit during 2018-19 was on account |
| A. | A higher trade deficit |
| B. | A lower trade deficit |
| C. | A higher fiscal deficit |
| D. | A lower fiscal deficit |
| Answer» A. A higher trade deficit | |
| 25. |
India figures among the top ….global exporters and importers of services. |
| A. | Five |
| B. | Seven |
| C. | Ten |
| D. | Twenty |
| Answer» C. Ten | |
| 26. |
The top two countries that remain the top sources of FDI to India during 2017-19 are |
| A. | Singapore and Mauritius |
| B. | USA and Brazil |
| C. | France and Britain |
| D. | Bangladesh and Nepal |
| Answer» A. Singapore and Mauritius | |
| 27. |
During the period of the first Five-Year Plan, India’s imports mainly consisted of |
| A. | Silver |
| B. | Foodgrains |
| C. | Pharmaceuticals |
| D. | None of the above |
| Answer» B. Foodgrains | |
| 28. |
The net terms of trade refers to |
| A. | The ratio of unit value index of imports to unit value index of imports. |
| B. | The ratio of unit value of a commodity to per capita income |
| C. | The ratio of unit value of a commodity of domestic country to the unit value of a commodity of foreign countries |
| D. | The ratio of unit value of domestic exports to the unit value of foreign exports |
| Answer» A. The ratio of unit value index of imports to unit value index of imports. | |
| 29. |
Foreign investment inflows help to mitigate the pressure on the overall |
| A. | Balance of Trade |
| B. | Balance of Payments |
| C. | International trade |
| D. | Fiscal deficit |
| Answer» B. Balance of Payments | |
| 30. |
India’s foreign trade policy during the late 1950s was often termed as |
| A. | Import pessimism |
| B. | Export pessimism |
| C. | Import optimism |
| D. | Export optimism |
| Answer» B. Export pessimism | |
| 31. |
The full form of EXIM is |
| A. | Exchange and Import |
| B. | Export-Import |
| C. | Exported and Imported |
| D. | None of the above |
| Answer» B. Export-Import | |
| 32. |
Which of the following manages and monitors India’s foreign exchange rate in order to correct deficit in BoP? |
| A. | The Reserve Bank of India |
| B. | The Government of India |
| C. | The Securities and Exchange Board of India |
| D. | The Ministry of External Affairs |
| Answer» A. The Reserve Bank of India | |
| 33. |
Under the Liberalized Exchange Rate Management System (LERMS), the rupee got a partial convertibility in the ratio |
| A. | 80:20 |
| B. | 70:30 |
| C. | 60:40 |
| D. | 50:50 |
| Answer» C. 60:40 | |
| 34. |
Which of the following is/are not the policy measure/measures to correct deficit in Balance of Payments? |
| A. | Fiscal and Monetary |
| B. | Structural reforms |
| C. | External financing |
| D. | Issuing new currency |
| Answer» D. Issuing new currency | |
| 35. |
Gold imports had increased during 1992-99 due the repeal of the Gold Control Order in |
| A. | 1990 |
| B. | 1991 |
| C. | 1992 |
| D. | 1993 |
| Answer» B. 1991 | |
| 36. |
Since 1950, India’s foreign trade has undergone important changes signifying that it has entered into |
| A. | Unilateral trade |
| B. | Bilateral trade |
| C. | Multilateral trade |
| D. | None of the above |
| Answer» C. Multilateral trade | |
| 37. |
The huge trade deficit India experienced during the 1980s was mainly due to |
| A. | Slow growth of exports and fast rise in imports |
| B. | Slow growth of imports and fast rise of exports |
| C. | Increased in defence expenditure |
| D. | Inflation |
| Answer» A. Slow growth of exports and fast rise in imports | |
| 38. |
The slow growth of exports during 2004-2007 was the result of |
| A. | The depreciation of rupee against dollar |
| B. | The appreciation of rupee against dollar |
| C. | Increased in the general price level |
| D. | None of the above |
| Answer» B. The appreciation of rupee against dollar | |
| 39. |
The BoP situation does not deteriorate so long as |
| A. | The primary deficit is under control |
| B. | The trade deficit is under control |
| C. | The fiscal deficit is under control |
| D. | Monetary deficit is under control |
| Answer» C. The fiscal deficit is under control | |
| 40. |
During the period of 1950-51, the traditional exports like tea, jute and cotton textiles formed |
| A. | 45 per cent of the total exports |
| B. | 50 per cent of the total exports |
| C. | 55 per cent of the total exports |
| D. | 60 per cent of the total exports |
| Answer» C. 55 per cent of the total exports | |
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