MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 452 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.
| 251. |
Ricardian theory has _ countries and commodities |
| A. | 32 |
| B. | 23 |
| C. | 24 |
| D. | 22 |
| Answer» E. | |
| 252. |
The objective of commercial policy is / are _ . |
| A. | increase trade relation |
| B. | endanger domestic market |
| C. | allow import of goods |
| D. | Restrict exports |
| Answer» E. | |
| 253. |
When demand for foreign exchange increases, the exchange rate _. |
| A. | increases |
| B. | inversely |
| C. | decrease |
| D. | unrelated |
| Answer» B. inversely | |
| 254. |
Investment in financial assets like shares or bonds abroad will _- the demand for foreign exchange. |
| A. | inceae |
| B. | decrease |
| C. | keep constant |
| D. | fluctuate |
| Answer» B. decrease | |
| 255. |
Abundance of a factor makes it |
| A. | Easy |
| B. | More |
| C. | Expensive |
| D. | Cheap |
| Answer» E. | |
| 256. |
Comparative advantage occurs when ……..than other country . |
| A. | A country has more population |
| B. | A country can produce more goods |
| C. | A country has a lower opportunity cost in the production of a good |
| D. | A country has more product lines |
| Answer» D. A country has more product lines | |
| 257. |
Which of the following is not a non monetary measure to correct the disequilibrium in BOP ? |
| A. | Tariff |
| B. | Import quotas |
| C. | Export promotion |
| D. | Devaluation |
| Answer» E. | |
| 258. |
Prime Minister _ announced the government’s intention that U.K. will not seek permanent membership of the European single market or the EU customs union after leaving the EU. |
| A. | David Cameroon |
| B. | Trump |
| C. | Narendra Modi |
| D. | Theresa May |
| Answer» E. | |
| 259. |
According to Classical economists, _ is the reason for a country to specialie in the production of a commodity |
| A. | Internalisation |
| B. | Cost differences |
| C. | International Division of labor |
| D. | Special Commodities |
| Answer» D. Special Commodities | |
| 260. |
Trade between two countries is called |
| A. | Internal trade |
| B. | Intra-Country trade |
| C. | Intra-State Trade |
| D. | International Trade |
| Answer» E. | |
| 261. |
India has adipted _ _ _ Exchange rate system. |
| A. | Fixed |
| B. | Flexible |
| C. | Managed |
| D. | Stable |
| Answer» D. Stable | |
| 262. |
If a country enjoys an absolute advantage in the production of all commodities then also trade is possible”. Who said this? |
| A. | Adam Smith |
| B. | David Ricardo |
| C. | J.S.Mill |
| D. | Alfred Marshall |
| Answer» C. J.S.Mill | |
| 263. |
In BOP, total receipts must be equal to total _ . |
| A. | payment |
| B. | deficit |
| C. | income |
| D. | revenue |
| Answer» B. deficit | |
| 264. |
The -----------is the largest market in the world. |
| A. | foreign exchange market |
| B. | NSE |
| C. | BSE |
| D. | NASDAQ |
| Answer» B. NSE | |
| 265. |
Protectionism |
| A. | increase the quality of imports |
| B. | decrease the government revenue |
| C. | increase the government earnings from tax |
| D. | decrease the government earnings from tax |
| Answer» D. decrease the government earnings from tax | |
| 266. |
The differencbetween bid price and ask price s the _ |
| A. | loss |
| B. | profit |
| C. | value |
| D. | difference |
| Answer» C. value | |
| 267. |
In balance of payment account, all goods exported and imported are recorded in _ . |
| A. | Capital account |
| B. | Merchandise account |
| C. | Invisible account |
| D. | Current account |
| Answer» D. Current account | |
| 268. |
Which of the following is not an assumption of the Purchasing Power Paritytheory? _ |
| A. | There are no trade barriers between countries |
| B. | The price index for each of the two countries must be comprised of the same basket of goods |
| C. | All the prices should be indexed to the same year |
| D. | Changes in the exchange rate changes internal price level |
| Answer» E. | |
| 269. |
Reciprocal demand is |
| A. | Mutual demand of two countriesto each other’s goods |
| B. | Mutual supply |
| C. | price of export and import |
| D. | Investment |
| Answer» B. Mutual supply | |
| 270. |
Under free trade _ benefit more. |
| A. | consumer |
| B. | agents |
| C. | middlemen |
| D. | traders |
| Answer» B. agents | |
| 271. |
The PPP theory _ capital transfers. |
| A. | considers |
| B. | appreciates |
| C. | ignores |
| D. | values |
| Answer» D. values | |
| 272. |
TRIMs deals with _ . |
| A. | Foreign investment |
| B. | Foreign aid |
| C. | Services |
| D. | Goods |
| Answer» B. Foreign aid | |
| 273. |
_ enables an investor to earn high returns while minimizing capital risks. |
| A. | Liquidity |
| B. | Reserves |
| C. | Returns |
| D. | Leverage |
| Answer» E. | |
| 274. |
The degree of _ achieved affect the exchange rate. |
| A. | education |
| B. | health |
| C. | growth |
| D. | currency |
| Answer» D. currency | |
| 275. |
Reducing public expenditure to correct BOP disequilibrium is a _ __ measure. |
| A. | Monetary |
| B. | Fiscal |
| C. | Special |
| D. | Commercial |
| Answer» C. Special | |
| 276. |
A favourable terms of trade indicates _ imports for given exports |
| A. | more |
| B. | less |
| C. | lower |
| D. | same |
| Answer» B. less | |
| 277. |
The full form of ASEAN is _ . |
| A. | Association of South East African Nations |
| B. | Association of South Europe Allied Nations |
| C. | Association of South East Asian Nations |
| D. | Association oS Southern,eastern European Nations |
| Answer» D. Association oS Southern,eastern European Nations | |
| 278. |
The relative version is considered to be _ to absolute version. |
| A. | superior |
| B. | Gustav Cassel |
| C. | selection of index numbers |
| D. | inferior |
| Answer» B. Gustav Cassel | |
| 279. |
Transaction in which exchange of currencies take place at a specified future date, subsequent to spot date is known as, |
| A. | swap transaction |
| B. | forward transaction |
| C. | future transaction |
| D. | non-deliverable forwards |
| Answer» C. future transaction | |
| 280. |
Devaluation of a currency is brought about by the _ . |
| A. | World Bank |
| B. | Asian Development Bank |
| C. | International Finance Corporation |
| D. | Government |
| Answer» E. | |
| 281. |
The main objective of trade barriers are _ . |
| A. | to discourage new industries domestically |
| B. | to reduce unnecessary imports |
| C. | to spend valuable foreign exchange |
| D. | To allow free trade |
| Answer» E. | |
| 282. |
Redistribution effect is called _ . |
| A. | Revenues effect |
| B. | Consumption effect |
| C. | Productive effect |
| D. | Transfer effect |
| Answer» E. | |
| 283. |
_ agreement deals in trade in services |
| A. | TRIMs |
| B. | TRIPs |
| C. | GATs |
| D. | UNCTAD |
| Answer» D. UNCTAD | |
| 284. |
Marshall and Edgeworth introduced a geometrical device to explain the gains from trade which is known as |
| A. | Indifference cur |
| B. | Offer curve |
| C. | Isoquant |
| D. | Demand curve |
| Answer» C. Isoquant | |
| 285. |
A tariff is a tax on _ _ . |
| A. | domestic goods and services |
| B. | foreign goods and service |
| C. | quality of goods |
| D. | None of the above |
| Answer» C. quality of goods | |
| 286. |
TRIPS (trade-related aspects of intellectual property rights) agreement is administered by |
| A. | world bank |
| B. | united nations organiz |
| C. | World trade organiz |
| D. | United nations conferen |
| Answer» D. United nations conferen | |
| 287. |
Commodity Y is Capital intensive if _ _ |
| A. | Ky / Ly = Kx / Lx |
| B. | Ky / Ly < Kx /Lx |
| C. | Ky /Ly > Kx / Lx |
| D. | Ky > Kx |
| Answer» D. Ky > Kx | |
| 288. |
Terms of trade of less developed countries are generally unfavourable because |
| A. | They export primary goods |
| B. | They export capital goods |
| C. | They export few goods |
| D. | They import few goods |
| Answer» B. They export capital goods | |
| 289. |
In a system of managed float there is less chance of speculation. |
| A. | flexible |
| B. | managed float |
| C. | fixed |
| D. | restictive |
| Answer» C. fixed | |
| 290. |
_ means a decline in the rate of exchange of one country in terms of another’s. |
| A. | Deflation |
| B. | Tariff |
| C. | Exchange Depreciation |
| D. | exchang devaluation |
| Answer» D. exchang devaluation | |
| 291. |
Under free trade __ will be higher. |
| A. | wages |
| B. | trade wars |
| C. | civil wars |
| D. | restrictions |
| Answer» B. trade wars | |
| 292. |
_ _ is an official institution of the European Union. |
| A. | European Council |
| B. | European Parliament |
| C. | European Commission |
| D. | European Investment Bank |
| Answer» B. European Parliament | |
| 293. |
_has enabled faster growth of the foreign exchange market. |
| A. | Technology |
| B. | Leverage |
| C. | Internaltrade |
| D. | exchange rate |
| Answer» B. Leverage | |
| 294. |
The currency used for international transactions irrespective of the importing or exporting country’s currency is called _ . |
| A. | Soft currency |
| B. | Bitcoin |
| C. | Vehicle currency |
| D. | value currency |
| Answer» D. value currency | |
| 295. |
Pick out the feature which is not true of the Agreement on Agriculture. |
| A. | Reduce domestic subsidies |
| B. | reduce export subsidies |
| C. | Increase tariffs |
| D. | Increase trade in agricultural goods |
| Answer» D. Increase trade in agricultural goods | |
| 296. |
Infant Industry Argument is justified for _ . |
| A. | Protecting old industries |
| B. | For enabling competitive efficiency of industries |
| C. | For strengthening public sector |
| D. | For allowing free trade |
| Answer» C. For strengthening public sector | |
| 297. |
Flexible exchange rate system, the exchange rate is determined by _ |
| A. | Market forces |
| B. | Central Bank |
| C. | commercial bank |
| D. | Scheduled Bank |
| Answer» B. Central Bank | |
| 298. |
The consumption effect of tariffs forces consumers to _ _. |
| A. | increase their consumption due to tariffs. |
| B. | pay lower price due to tariffs. |
| C. | reduce their consumption due to tariffs. |
| D. | depend on imports for consumption |
| Answer» D. depend on imports for consumption | |
| 299. |
_ is a measure under which a commodity of a specific volume or value is allowed to be imported in the country. |
| A. | Voluntary Export Restraints |
| B. | Combined duty |
| C. | Import quota |
| D. | Revenue tariff |
| Answer» D. Revenue tariff | |
| 300. |
In a free world in which no restrictions exist, international trade will lead to |
| A. | Reduced real li |
| B. | Reduced efficiency |
| C. | Reduced real GDP |
| D. | Increased efficiency |
| Answer» E. | |