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. |
Trading in foreign exchange has become fast and simple due to _ . |
| A. | Simple procedures |
| B. | Geographical proximity |
| C. | Improved technology |
| D. | Bullet trains |
| Answer» C. Improved technology | |
| 2. |
_ 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» D. Budget | |
| 3. |
_ 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» E. | |
| 4. |
Trade barriers are often called _ _. |
| A. | Free trade |
| B. | Protection |
| C. | Trade wars |
| D. | Economic integration |
| Answer» C. Trade wars | |
| 5. |
is equally important as price of exports |
| A. | Income from exports |
| B. | Production level of exports |
| C. | amount of labor fromexports |
| D. | raw materials used for exports |
| Answer» B. Production level of exports | |
| 6. |
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» D. Bank capital | |
| 7. |
_ _ is a type of non – tariff barriers. |
| A. | Import Quotas |
| B. | Export duties |
| C. | Import Duties |
| D. | Specific Duties |
| Answer» B. Export duties | |
| 8. |
Transactions in the foreign exchange market are carried out are termed as _. |
| A. | fixed rate |
| B. | forward rate |
| C. | exchange rate |
| D. | Hedging |
| Answer» D. Hedging | |
| 9. |
Pick out the feature which does not describe European Union. |
| A. | Common currency |
| B. | Elimination of customs duties on the movement of goods. |
| C. | Independent policies for agriculture among member nations. |
| D. | Creation of a European Social Fund to improve employment opportunities of workers. |
| Answer» D. Creation of a European Social Fund to improve employment opportunities of workers. | |
| 10. |
According to J S Mill, equilibrium terms of trade is determined by __ demand |
| A. | Market |
| B. | Aggregate |
| C. | Effective |
| D. | Reciprocal |
| Answer» E. | |
| 11. |
The provision of foreign bills of exchange in international payments in an example of _ . |
| A. | Transfer function |
| B. | Credit function |
| C. | Speculation |
| D. | None of the above |
| Answer» D. None of the above | |
| 12. |
ASEAN was formed in . |
| A. | 1947 |
| B. | 1967 |
| C. | 1977 |
| D. | 1987 |
| Answer» B. 1967 | |
| 13. |
_ _ disequilibrium is chronic in nature. |
| A. | Cyclical |
| B. | Fundamental |
| C. | Structural |
| D. | Monetary |
| Answer» C. Structural | |
| 14. |
Gifts and charities account are also known as : |
| A. | Export |
| B. | Unilateral transfer |
| C. | Import |
| D. | Long–term borrowing |
| Answer» D. Long–term borrowing | |
| 15. |
_ _ became an ASEAN dialogue partner in 1995. |
| A. | India |
| B. | Pakisthan |
| C. | Srilanka |
| D. | USA |
| Answer» B. Pakisthan | |
| 16. |
Services rendered by the domestic country to foreign counter parts increase the _ of foreign exchange. |
| A. | supply |
| B. | demand |
| C. | manufacture |
| D. | produce |
| Answer» B. demand | |
| 17. |
_ exchange rate may be either at a premium or discount or at par. |
| A. | spot |
| B. | forward |
| C. | current |
| D. | option |
| Answer» C. current | |
| 18. |
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» B. increases | |
| 19. |
_ _ introduced the concept of Gross barter terms of trade |
| A. | Adam Smith |
| B. | Alfred Marshall |
| C. | F W Taussig |
| D. | David Ricardo |
| Answer» D. David Ricardo | |
| 20. |
_ _ is the second largest currency in the world. |
| A. | Dollar |
| B. | Euro |
| C. | Yen |
| D. | Pound |
| Answer» C. Yen | |
| 21. |
Two countries can gain from foreign trade if |
| A. | Cost ratios are different |
| B. | Price ratios are different |
| C. | Both cost ratios and price ratios are different |
| D. | Tarifs are different |
| Answer» D. Tarifs are different | |
| 22. |
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» E. | |
| 23. |
At present, European Union consist of _ member countries. |
| A. | 26 |
| B. | 27 |
| C. | 28 |
| D. | None of these above |
| Answer» D. None of these above | |
| 24. |
The terms of _ is 50 years. |
| A. | copyright |
| B. | Services |
| C. | patent |
| D. | Trademarks |
| Answer» B. Services | |
| 25. |
The concept of offer curves is associated with the names of |
| A. | David Ricardo |
| B. | J S Mill and Alfred |
| C. | Alfred Marshall an |
| D. | Edgeworth and Pareto |
| Answer» D. Edgeworth and Pareto | |
| 26. |
If import prices rse more than export prices, terms of trade have _ |
| A. | improved |
| B. | deteriorated |
| C. | increased |
| D. | advanced |
| Answer» C. increased | |
| 27. |
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» D. Fundamental disequilibrium | |
| 28. |
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» B. To allow dumping | |
| 29. |
No change in technology, no transport cost, constant returns to scale - these assumptions make the Comparative Cost advantage theory __ |
| A. | Dynamic |
| B. | Redundant |
| C. | Static |
| D. | Unacceptable |
| Answer» D. Unacceptable | |
| 30. |
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» C. GATs | |
| 31. |
The _rate is determined by the demand for and supply of a currency. |
| A. | spot |
| B. | forward rate |
| C. | option |
| D. | futures |
| Answer» B. forward rate | |
| 32. |
The referendum for Brexit was held on _ . |
| A. | July 1st 2017 |
| B. | June 23rd 2016 |
| C. | September 1,2017 |
| D. | July 23rd 2016 |
| Answer» C. September 1,2017 | |
| 33. |
_ are authorized to deal in foreign exchange transactions. |
| A. | Moneylenders |
| B. | Money launderers |
| C. | Commercial banks |
| D. | RRBs |
| Answer» D. RRBs | |
| 34. |
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» C. 1st January 1995 | |
| 35. |
The relative version of the PPP theory is propounded by _. |
| A. | Cassel |
| B. | Adam Smith |
| C. | J.S.Mill |
| D. | Alfred Marshall |
| Answer» B. Adam Smith | |
| 36. |
GATs deals with trade in _ . |
| A. | Services |
| B. | patent |
| C. | copyright |
| D. | trademarks |
| Answer» B. patent | |
| 37. |
Restrictions imposed on the quantity of imports is _ . |
| A. | Surplus |
| B. | Quotas |
| C. | Balance |
| D. | Tariffs |
| Answer» C. Balance | |
| 38. |
The WTO agreements cover _ . |
| A. | TRIPs |
| B. | IMF |
| C. | UNCTAD |
| D. | ASEAN |
| Answer» B. IMF | |
| 39. |
According to the Purchasing Power Parity theory, the rate of exchange between the currencies of two countries is determined by_ |
| A. | their relative price levels |
| B. | their import and export volumes |
| C. | their import and export values |
| D. | their relative capital movements |
| Answer» B. their import and export volumes | |
| 40. |
The developing Countries it is argued usually |
| A. | Enjoy Favourable terms of trade |
| B. | Suffers from adverse terms of trade |
| C. | have better income terms of trade |
| D. | have better bargaining power |
| Answer» C. have better income terms of trade | |
| 41. |
H-O Theory is a _ _ model |
| A. | 1 X 1 X 1 |
| B. | 2 X 2 X 2 |
| C. | 3 X 3 X 3 |
| D. | 4 X 4 X 4 |
| Answer» C. 3 X 3 X 3 | |
| 42. |
In the _ account, only transactions relating to goods are entered. |
| A. | invisible account |
| B. | Capital account |
| C. | trade |
| D. | Current account |
| Answer» D. Current account | |
| 43. |
If,England 1 wine = 1/2 cloth and if Portugal 1 wine = 1 cloth, this I an example of |
| A. | Comparative advantage |
| B. | Absolute Advantage |
| C. | Similar Cost |
| D. | Unequal Cost |
| Answer» B. Absolute Advantage | |
| 44. |
Factor intensity is measured in _ terms |
| A. | Absolute Cost |
| B. | Factor ratios |
| C. | Relative Cost |
| D. | Frequency of capital labor |
| Answer» C. Relative Cost | |
| 45. |
ASEAN was formed with the signing of _. |
| A. | European declaration |
| B. | American declaration |
| C. | Asean declaration |
| D. | Bangkok declaration |
| Answer» E. | |
| 46. |
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» D. Unequal | |
| 47. |
The is the single currency of the European Union. |
| A. | dollar |
| B. | euro |
| C. | yen |
| D. | pound |
| Answer» C. yen | |
| 48. |
H-o Theory s based on value theory. |
| A. | Partial |
| B. | Semi-partial |
| C. | General |
| D. | Semi-General |
| Answer» D. Semi-General | |
| 49. |
_ _ is the World’s largest single market area. |
| A. | European Union |
| B. | India |
| C. | Pakisthan |
| D. | Srilanka |
| Answer» B. India | |
| 50. |
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» D. Trade Related Investment in services | |