MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
The classical theory of international trade was developed by |
| A. | Adam Smith |
| B. | Marshall |
| C. | Keynes |
| D. | None of these |
| Answer» B. Marshall | |
| 2. |
Purchasing Power Purity Theory presents a line between exchange rates and -------- |
| A. | Interest rate |
| B. | Inflation |
| C. | BOP |
| D. | None of these |
| Answer» C. BOP | |
| 3. |
Speculation is not possible in the case of --------- system |
| A. | Flexible |
| B. | Gold standard |
| C. | Fixed |
| D. | None of these |
| Answer» D. None of these | |
| 4. |
Globalised economics prefer------------ |
| A. | Fixed System |
| B. | Pegging system |
| C. | Flexible system |
| D. | Bretton wood system |
| Answer» D. Bretton wood system | |
| 5. |
Extending of economic activities across national boundaries is known as ------------- |
| A. | Liberalization |
| B. | Privatization |
| C. | Globalization |
| D. | None of these |
| Answer» D. None of these | |
| 6. |
The rate at which one currency is exchanged for another is known as ------------ |
| A. | Exchange options |
| B. | Foreign exchange |
| C. | Exchange rate |
| D. | Futures |
| Answer» D. Futures | |
| 7. |
UNCTAD was constituted in ----------- |
| A. | 1961 |
| B. | 1962 |
| C. | 1963 |
| D. | 1964 |
| Answer» E. | |
| 8. |
Deficit BOP can be solved by -------------------- |
| A. | Expenditure switching policies |
| B. | Expenditure reducing policies |
| C. | Both a and b |
| D. | None of these |
| Answer» D. None of these | |
| 9. |
When imports increase, the supply of foreign currency ------------- |
| A. | Increase |
| B. | Decrease |
| C. | Remains constant |
| D. | None of these |
| Answer» C. Remains constant | |
| 10. |
GATT was changed to --------------- |
| A. | WTO |
| B. | IBRD |
| C. | ADB |
| D. | IMF |
| Answer» B. IBRD | |
| 11. |
Which is the invisible item in the BOP |
| A. | Machinery |
| B. | Tourist |
| C. | Car |
| D. | None of these |
| Answer» C. Car | |
| 12. |
The official decrease in the value of a currency is known as --------- |
| A. | Depreciation |
| B. | Devaluation |
| C. | Appreciation |
| D. | None of these |
| Answer» C. Appreciation | |
| 13. |
Flexible exchange rate is based on the concept of |
| A. | Supply |
| B. | Demand |
| C. | Demand and supply |
| D. | None of these |
| Answer» D. None of these | |
| 14. |
Increased capital inflows increases ------------------ |
| A. | Imports |
| B. | Value of domestic currency |
| C. | Value of foreign currency |
| D. | None of these |
| Answer» C. Value of foreign currency | |
| 15. |
Gold standard is an example of |
| A. | Floating exchange rate |
| B. | Fixed exchange rate |
| C. | Crawling peg |
| D. | Crawling bands |
| Answer» C. Crawling peg | |
| 16. |
The currency of Italy is ---------------- |
| A. | Euro |
| B. | Dollars |
| C. | Yen |
| D. | Pound |
| Answer» B. Dollars | |
| 17. |
The President of IBRD is the head of --------------- |
| A. | ADB |
| B. | IDA |
| C. | EFTA |
| D. | None of these |
| Answer» C. EFTA | |
| 18. |
Under gold standard the value of the currency unit was defined in terms of ------------- |
| A. | Currencies |
| B. | Silver |
| C. | Gold |
| D. | None of these |
| Answer» D. None of these | |
| 19. |
Devaluation reduces the foreign price of -------------- |
| A. | Exports |
| B. | Imports |
| C. | Both exports and imports |
| D. | None of these |
| Answer» B. Imports | |
| 20. |
Capital outflows leads to increase in the --------------- |
| A. | Supply of foreign currencies |
| B. | Demand for foreign currencies |
| C. | Demand for domestic currency |
| D. | None of these |
| Answer» C. Demand for domestic currency | |
| 21. |
The objective of IDA is |
| A. | Increase production |
| B. | Stability in exchange rate |
| C. | Improve living conditions |
| D. | Increase income |
| Answer» D. Increase income | |
| 22. |
Regional member of the Asian Development Bank is |
| A. | India |
| B. | UK |
| C. | Brazil |
| D. | South Africa |
| Answer» B. UK | |
| 23. |
The ASEAN was established in -------------------- |
| A. | 1967 |
| B. | 1977 |
| C. | 1987 |
| D. | 1999 |
| Answer» B. 1977 | |
| 24. |
MIGA was established in |
| A. | 1978 |
| B. | 1988 |
| C. | 1998 |
| D. | 2008 |
| Answer» C. 1998 | |
| 25. |
The European Union was formed in |
| A. | 1950 |
| B. | 1951 |
| C. | 1952 |
| D. | 1953 |
| Answer» D. 1953 | |
| 26. |
Purchasing power purity theory was introduced by ------------ |
| A. | Fisher |
| B. | Cassel |
| C. | Marshall |
| D. | Paul Einzing |
| Answer» C. Marshall | |
| 27. |
Which is known as soft loan window of IBRD |
| A. | MIGA |
| B. | IFC |
| C. | IMF |
| D. | IDA |
| Answer» E. | |
| 28. |
FEMA is enacted by --------- |
| A. | Parliament of India |
| B. | Supreme Court of India |
| C. | RBI |
| D. | None of these |
| Answer» B. Supreme Court of India | |
| 29. |
Devaluation raised the domestic price of -------------- |
| A. | Exports |
| B. | Imports |
| C. | Both exports and imports |
| D. | None of these |
| Answer» C. Both exports and imports | |
| 30. |
SDRs scheme was initiated in ------------------- |
| A. | 1950’s |
| B. | 1960’s |
| C. | 1970’s |
| D. | 1980’s |
| Answer» D. 1980’s | |
| 31. |
The equilibrium exchange rate is determined by --------------- |
| A. | Demand for currencies |
| B. | Supply of currencies |
| C. | Demand and Supply of currencies |
| D. | None of these |
| Answer» D. None of these | |
| 32. |
In the exchange rate determination PPP theory considers -------- |
| A. | Interest rates |
| B. | Inflation rates |
| C. | Spot transactions |
| D. | None of these |
| Answer» C. Spot transactions | |
| 33. |
The Indian Currency code used in foreign exchange market is |
| A. | INR |
| B. | IDN |
| C. | IND |
| D. | IDA |
| Answer» B. IDN | |
| 34. |
Foreign exchange is demanded by ------------- |
| A. | Exporters |
| B. | Domestic travelers |
| C. | Importers |
| D. | None of these |
| Answer» D. None of these | |
| 35. |
SDRs are also known as ----------- |
| A. | Currency |
| B. | Gold |
| C. | Paper gold |
| D. | None of these |
| Answer» D. None of these | |
| 36. |
The rate at which the exchange dealer is ready to buy a currency as known as ---------------- |
| A. | Ask rate |
| B. | SWAP rate |
| C. | Spread |
| D. | Bid rate |
| Answer» E. | |
| 37. |
The difference between buying and selling rate is called |
| A. | ASK rate |
| B. | Bid rate |
| C. | Spread |
| D. | SWAP |
| Answer» D. SWAP | |
| 38. |
A BOP surplus can be corrected through -------------- |
| A. | Export promotion |
| B. | Exchange control |
| C. | Appreciation |
| D. | Increase in interest |
| Answer» D. Increase in interest | |
| 39. |
Buffer stock financing was introduced by------------ |
| A. | IMF |
| B. | IFC |
| C. | IDA |
| D. | IBRD |
| Answer» B. IFC | |
| 40. |
Mint parity theory is suitable for --------- |
| A. | Gold standard |
| B. | Paper standard |
| C. | Flexible system |
| D. | None of these |
| Answer» B. Paper standard | |
| 41. |
Soft loans to underdeveloped countries are disbursed by ----------- |
| A. | IDA |
| B. | IBRD |
| C. | GATT |
| D. | ADB |
| Answer» B. IBRD | |
| 42. |
Euro is a ---------- |
| A. | Basket Currency |
| B. | Paper Gold |
| C. | Gold Currency |
| D. | None of these |
| Answer» B. Paper Gold | |
| 43. |
Open economies are |
| A. | Dependent |
| B. | Independent |
| C. | Stable |
| D. | None of these |
| Answer» B. Independent | |
| 44. |
The ADB is managed by ------------- |
| A. | Director General |
| B. | Managing Director |
| C. | President |
| D. | None of these |
| Answer» D. None of these | |
| 45. |
Which monetary system is suitable for global economies |
| A. | Fixed |
| B. | Pegging |
| C. | Flexible |
| D. | None of these |
| Answer» D. None of these | |
| 46. |
Authority flows from |
| A. | top to bottom |
| B. | bottom to top |
| C. | horizontally |
| D. | all of these |
| Answer» B. bottom to top | |
| 47. |
…………………..is that phase of business enterprise that concerns itself with the overall determination of institutional objectives and the policies necessary to be followed in achieving those objectives. |
| A. | management |
| B. | administration |
| C. | both of these |
| D. | none |
| Answer» C. both of these | |
| 48. |
Autocratic style of leadership is also known as …………. |
| A. | authoritarian |
| B. | participative |
| C. | free rein |
| D. | none of these |
| Answer» B. participative | |
| 49. |
Authority is the right to give -------- and the power to exact obedience |
| A. | information |
| B. | orders |
| C. | money |
| D. | none of these |
| Answer» C. money | |
| 50. |
…………….is a process that allows people to make decisions based on their deeper values which will be economically, socially and environmentally sound. |
| A. | holistic approach |
| B. | ethics management |
| C. | code of conduct |
| D. | none of these |
| Answer» B. ethics management | |