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 European Economic Community (EEC) was founded in 1957 under the treaty of _. |
| A. | Paris |
| B. | Rome |
| C. | Washington |
| D. | Veraiiles |
| Answer» C. Washington | |
| 2. |
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» D. Remove qualitative retrictions | |
| 3. |
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» D. All of the above | |
| 4. |
Demand for foreign exchange varies _ with the exchange rates. |
| A. | Direct |
| B. | Negative |
| C. | inversely |
| D. | positive |
| Answer» D. positive | |
| 5. |
TRIMs deals with |
| A. | Foreign investme |
| B. | Foreign aid |
| C. | Services |
| D. | Goods |
| Answer» B. Foreign aid | |
| 6. |
The countries of the world are following the exchange rate system. |
| A. | fixed |
| B. | flexible |
| C. | restrictive |
| D. | strict |
| Answer» C. restrictive | |
| 7. |
Interest rate differentials the exchange rate. |
| A. | affect |
| B. | tandardised |
| C. | localise |
| D. | neutralise |
| Answer» B. tandardised | |
| 8. |
_ _ 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» C. revenue | |
| 9. |
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» B. Blue box | |
| 10. |
Under IMF, the exchange rate system was _ |
| A. | gold standard |
| B. | currency board system |
| C. | dollarization |
| D. | EURO |
| Answer» B. currency board system | |
| 11. |
_ is the highest form of economic integration. |
| A. | Preferential trading system |
| B. | Free trade union |
| C. | Customs union |
| D. | Economic union |
| Answer» E. | |
| 12. |
Which of the following is an argument far free trade _ . |
| A. | prevents monopolies |
| B. | unfavourable terms of trade |
| C. | unfavourable balance of payments |
| D. | allows monopolies |
| Answer» B. unfavourable terms of trade | |
| 13. |
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» D. Bilateral flow | |
| 14. |
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» C. International Develo | |
| 15. |
__ is done to overcome uncertainties. |
| A. | Arbitrage |
| B. | Hedging |
| C. | speculation |
| D. | locking |
| Answer» C. speculation | |
| 16. |
TRIPs deals with _ . |
| A. | intellectual property rights |
| B. | Foreign investment |
| C. | Foreign aid |
| D. | Agriculture |
| Answer» B. Foreign investment | |
| 17. |
The modern foreign exchange market functions in a system of _ . |
| A. | Fixed exchange rate |
| B. | Gold standard |
| C. | Britton Wood system |
| D. | Floating exchange rate |
| Answer» E. | |
| 18. |
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» D. Terms of trade effect | |
| 19. |
According to H-O theory, International trade is, but a pecial case of _ _ trade. |
| A. | Inter-state |
| B. | Intra state |
| C. | Intra-Country |
| D. | Inter-regional |
| Answer» E. | |
| 20. |
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» B. Official transfers | |
| 21. |
Total amount of labor in Nation 1 is greater than labor in nation 2 if |
| A. | TK1 /TL1 > TK2 /TL2 |
| B. | TK1 / TL1 < TK2/TL2 |
| C. | TK1 /TL1 = TK2/TL2 |
| D. | TL1 > TL2 |
| Answer» B. TK1 / TL1 < TK2/TL2 | |
| 22. |
Expenditure switching policy is also known as _ _ . |
| A. | Devaluation |
| B. | Revaluation |
| C. | Appreciation |
| D. | Depriciation |
| Answer» B. Revaluation | |
| 23. |
In the determination of the exchange value of a currency, the first currency of a currency pair is called _ . |
| A. | Price currency |
| B. | Hard currency |
| C. | Base currency |
| D. | bitcoin |
| Answer» D. bitcoin | |
| 24. |
Which of the institutions is not a part of the world bank community? |
| A. | IFC |
| B. | IDA |
| C. | WTO |
| D. | IBRD |
| Answer» D. IBRD | |
| 25. |
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» C. Act West Policy | |
| 26. |
Pick out the item which is not a part of unilateral transfers. |
| A. | Gifts |
| B. | Grants |
| C. | Loan |
| D. | Donation |
| Answer» D. Donation | |
| 27. |
Comparative Advantage theory is based on _ value |
| A. | Cost theory |
| B. | Productivity theory |
| C. | Quality theory |
| D. | labor theory |
| Answer» E. | |
| 28. |
The classical economist Adam Smith was a champion of _ . |
| A. | Protectionism |
| B. | Free Trade |
| C. | Trade Wars |
| D. | Intra indstry trade |
| Answer» C. Trade Wars | |
| 29. |
WTO promote _ trade. |
| A. | bilateral |
| B. | multilateral |
| C. | unilateral |
| D. | restricted |
| Answer» C. unilateral | |
| 30. |
Single factoral terms of trade take in to account |
| A. | Export and import prices |
| B. | Changes in efficiency of factors producing export goods |
| C. | Changes in demand for imports |
| D. | Changes in demand for exports |
| Answer» C. Changes in demand for imports | |
| 31. |
Import embargo is an important retaiatory measure against_ _. |
| A. | dumping |
| B. | exports |
| C. | domestic producer |
| D. | domestic farmers |
| Answer» B. exports | |
| 32. |
Exchange rate between two currencies is based on _ __ |
| A. | purchasing power of two currencies |
| B. | economic development of the two nation |
| C. | political stability in the two countries |
| D. | export - import in two countries |
| Answer» B. economic development of the two nation | |
| 33. |
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» C. Cyclical disequilibrium | |
| 34. |
_ rate variations can affect the equilibrium exchange rate. |
| A. | Birth |
| B. | death |
| C. | inflation |
| D. | production |
| Answer» D. production | |
| 35. |
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» C. always shows a surplus | |
| 36. |
If Commodity Y requres 2 units of capital and 2 units of labor and commodity X requires 1 unit of capital and 4 units of labor then Y is |
| A. | Labor intenive |
| B. | Labor specific |
| C. | Capital Intensive |
| D. | Capital Specific |
| Answer» D. Capital Specific | |
| 37. |
Protection is made available for _ years for patents. |
| A. | 20 |
| B. | 30 |
| C. | 10 |
| D. | 40 |
| Answer» B. 30 | |
| 38. |
The limitations of Commodty terms of trade gave rise to _ |
| A. | Net barter terms of trade |
| B. | gross barter term of trade |
| C. | single factoral terms of trade |
| D. | double fctoral terms of trade |
| Answer» C. single factoral terms of trade | |
| 39. |
The only international organisation dealing with the global rules of trade between nations. |
| A. | WTO |
| B. | UN |
| C. | IMF |
| D. | World bank |
| Answer» B. UN | |
| 40. |
Absolute difference in Cost is explained by |
| A. | David Ricardo |
| B. | Adam Smith |
| C. | J.S.Mill |
| D. | Alfred Marshall |
| Answer» C. J.S.Mill | |
| 41. |
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» C. Capital account | |
| 42. |
Transaction where the exchange of currencies take place on the same date is known as |
| A. | swap transaction |
| B. | ready transaction |
| C. | spot transaction |
| D. | value tomorrow |
| Answer» C. spot transaction | |
| 43. |
Unilateral payments received _ _ the supply of foreign exchange. |
| A. | increase |
| B. | decrease |
| C. | does not change |
| D. | drastically changes |
| Answer» B. decrease | |
| 44. |
European union was initially formed with _ European countries. |
| A. | 27 |
| B. | 28 |
| C. | 6 |
| D. | 5 |
| Answer» D. 5 | |
| 45. |
International trade is the result of an advantage country possesses in producing a particular commodity at a _ |
| A. | Lower Cost |
| B. | Equal cost |
| C. | Higher cost |
| D. | Constant Cost |
| Answer» B. Equal cost | |
| 46. |
The purchasing power parity theory the difference in the quality of goods. |
| A. | considers |
| B. | appreciates |
| C. | ignores |
| D. | values |
| Answer» D. values | |
| 47. |
Economic integration means. |
| A. | Application of tariffs |
| B. | Removal of customs duties |
| C. | Banning the movement of goods and services |
| D. | banning trade |
| Answer» C. Banning the movement of goods and services | |
| 48. |
England 1 unit wine =1/2unit cloth, Portugal 1 unit wine = 1 unit cloth. This is an example of |
| A. | Comparative Cost |
| B. | Absolute Cost |
| C. | Relative Cost |
| D. | Unequal Cost |
| Answer» B. Absolute Cost | |
| 49. |
According to Adam Smith, international trade is advantageous for all participating countries only if they enjoy _ difference in cost of production |
| A. | Comparative |
| B. | Equal |
| C. | Absolute |
| D. | Unequal |
| Answer» D. Unequal | |
| 50. |
WTO replaced _ in 1995. |
| A. | GATT |
| B. | WTO |
| C. | UN |
| D. | UNESCO |
| Answer» B. WTO | |