MCQOPTIONS
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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.
| 301. |
__ function refer to the function of converting one currency into another. |
| A. | Arbitrage |
| B. | booking |
| C. | asking |
| D. | hedging |
| Answer» E. | |
| 302. |
The current account of balance of payment does not include : |
| A. | Balance of visible trade |
| B. | Import of services |
| C. | Unilateral services |
| D. | Foreign investment |
| Answer» E. | |
| 303. |
Free trade is based on the principle of _ _ . |
| A. | Comparative cost advantage |
| B. | Comparative disadvantage |
| C. | Production possibility advantage |
| D. | Equal cost |
| Answer» B. Comparative disadvantage | |
| 304. |
When an economy union involves unifying currency it becomes _ . |
| A. | Customs Union |
| B. | Trade Union |
| C. | Economic and Monetary Union |
| D. | Trade area |
| Answer» D. Trade area | |
| 305. |
_ refers to the rate at which the transaction take place at a future date. |
| A. | Forward exchange rate |
| B. | Arbitrage |
| C. | Spot exchange rate |
| D. | Hedging |
| Answer» B. Arbitrage | |
| 306. |
A decline in price would increase exports if demand is__ |
| A. | inelastic |
| B. | elastic |
| C. | constant |
| D. | fluctuating |
| Answer» C. constant | |
| 307. |
Consular documents include _ _. |
| A. | Certificate of origin |
| B. | Export certificates |
| C. | Uncertified consular invoices |
| D. | Bills of exchange |
| Answer» B. Export certificates | |
| 308. |
Reducing the value of domestic currency in term of foreign currency : |
| A. | Deflation |
| B. | Exchange control |
| C. | Tariff |
| D. | Devaluation |
| Answer» E. | |
| 309. |
Who aid the following, " The esence of international trade is not the absolute difference in cost but a comparative difference in cost." |
| A. | Adam Smith |
| B. | David Ricardo |
| C. | J.S.Mill |
| D. | Alfred Marshall |
| Answer» C. J.S.Mill | |
| 310. |
The rate at which goods are exchangeed between two countries is called |
| A. | Import price |
| B. | Export rate |
| C. | Foreign exchange |
| D. | Terms of trade |
| Answer» E. | |
| 311. |
A commercial policy is a government policy related to _. |
| A. | Commercial transactions of private companies |
| B. | Economic transactions across international borders |
| C. | Commercial transactions of developed countries |
| D. | Taxes |
| Answer» C. Commercial transactions of developed countries | |
| 312. |
When many commodities are traded terms of trade is expresed as _ of its export pricr to import price |
| A. | sum |
| B. | multiple |
| C. | index ratio |
| D. | index |
| Answer» D. index | |
| 313. |
A nation is capital abundant if |
| A. | PK1/PL1 < PK2/PL2 |
| B. | PK1/PL1>PK2/PL2 |
| C. | PK1/PL1 = PK2/PL2 |
| D. | PK1 < PK2 |
| Answer» C. PK1/PL1 = PK2/PL2 | |
| 314. |
r1 / w1 < r2 / w2 means |
| A. | Nation 1 is capital abundant |
| B. | Nation 1 is labor abundant |
| C. | Nation 2 is capital abundant |
| D. | Nation 2 has high wages |
| Answer» B. Nation 1 is labor abundant | |
| 315. |
Comparative Advantage is expressed in _ |
| A. | Absolute Cost |
| B. | Variable cost |
| C. | Cost ratios |
| D. | Marginal Cost |
| Answer» D. Marginal Cost | |
| 316. |
The origin of protectionist policy can be traced back to _ __. |
| A. | Free trade era |
| B. | Mercantilists days |
| C. | Globalisation period |
| D. | Brettonwoods system |
| Answer» C. Globalisation period | |
| 317. |
_ refers to the process of buying and selling a foreign currency in two different market at same time. |
| A. | Arbitrage |
| B. | Speculation |
| C. | Spot exchange rate |
| D. | Hedging |
| Answer» B. Speculation | |
| 318. |
J.S.Mill brought in _ factor to explain termsof trade |
| A. | cost |
| B. | demand |
| C. | supply |
| D. | quality |
| Answer» C. supply | |
| 319. |
A tariff------ |
| A. | Increases the volume of trade |
| B. | Reduces the volume of trade |
| C. | Has no effect on the volume of trade |
| D. | encourages foreign goods |
| Answer» C. Has no effect on the volume of trade | |
| 320. |
A _ country requires more foreign exchange. |
| A. | developing |
| B. | developed |
| C. | hermit nation |
| D. | restrictive |
| Answer» B. developed | |
| 321. |
Balance of payment always _ __. |
| A. | Deficit |
| B. | balances |
| C. | Surplus |
| D. | Equal |
| Answer» C. Surplus | |
| 322. |
Pick out the feature which is not true of the foreign exchange market. |
| A. | Buying and selling of currencies |
| B. | Largest market |
| C. | High liquidity |
| D. | Existence of a central market place |
| Answer» E. | |
| 323. |
Purchasing Power Parity Theory considers that goods in different countries are _ |
| A. | differential |
| B. | identical |
| C. | superior |
| D. | inferior |
| Answer» C. superior | |
| 324. |
The ratio of price of export to price of import is called |
| A. | Import price |
| B. | Export rate |
| C. | Foreign exchange |
| D. | Terms of trade |
| Answer» E. | |
| 325. |
The declaration recognised that the TRIPs agreement should protect public health. |
| A. | Brazil |
| B. | Doha |
| C. | Bandung |
| D. | Singapore |
| Answer» C. Bandung | |
| 326. |
_ is a type of tariff barriers. |
| A. | Embargo |
| B. | Ad–valorem duties |
| C. | Product standard |
| D. | Consular Formalities |
| Answer» C. Product standard | |
| 327. |
_ are duties levied on imports. |
| A. | Tariffs |
| B. | Deflation |
| C. | Exchange control |
| D. | Qoutas |
| Answer» B. Deflation | |
| 328. |
Euro is the official currency for _ _ member countries of European Union. |
| A. | 16 |
| B. | 17 |
| C. | 18 |
| D. | 19 |
| Answer» E. | |
| 329. |
According to _ theory, the exchange rate between two currencies is determined by their purchasing power. |
| A. | Purchasing Power Parity |
| B. | Balance of payment theory |
| C. | Mint parity theory |
| D. | Comparative advantage theory |
| Answer» B. Balance of payment theory | |
| 330. |
Which of the following Non – Tariff Barriers prevents free movement of capital between countries? |
| A. | preferential government procurement |
| B. | Exchange Controls |
| C. | Domestic subsidie |
| D. | Local content requirement |
| Answer» C. Domestic subsidie | |
| 331. |
_ term long run disequilibrium as fundamental disequilibrium. |
| A. | Tariff |
| B. | IMF |
| C. | trade |
| D. | WTO |
| Answer» C. trade | |
| 332. |
The main objective of monetary policy in India is_______: |
| A. | growth with stability |
| B. | reduce poverty and achieve stability |
| C. | overall monetary stability |
| D. | none of these |
| Answer» B. reduce poverty and achieve stability | |
| 333. |
If RBI wants to increase the credit flow it buys ______: |
| A. | government securities |
| B. | shares and debentures |
| C. | other local and short-term securities |
| D. | none of these |
| Answer» B. shares and debentures | |
| 334. |
The Cash Reserve Ratio is an effective instrument of credit control. Under the RBI Act, 1934 every ______bank has to keep certain minimum cash reserves with RBI: |
| A. | public bank |
| B. | commercial bank |
| C. | industrial and agricultural banks |
| D. | none of these |
| Answer» C. industrial and agricultural banks | |
| 335. |
_______controls the supply of money and bank credit: |
| A. | rbi |
| B. | indian banking association |
| C. | sebi |
| D. | none of these |
| Answer» B. indian banking association | |
| 336. |
Monetary Policy is a regulatory policy by which the ______or monetary authority of a country controls the supply of money, availability of bank credit and cost of money that is the rate of interest: |
| A. | central bank (rbi) |
| B. | sbi |
| C. | iba |
| D. | none of these |
| Answer» B. sbi | |
| 337. |
Point out the monetary policy instrument: |
| A. | an increase in direct taxes |
| B. | open-market operations |
| C. | freezing pensions |
| D. | a cut in government purchase of goods and services |
| Answer» C. freezing pensions | |
| 338. |
The variable that connect the market of money and the market of goods via investment spending is: |
| A. | the mpc |
| B. | the interest rate |
| C. | the mps |
| D. | the cpi |
| Answer» C. the mps | |
| 339. |
To increase the money supply, the bank central could: |
| A. | cut taxes |
| B. | purchase bonds in the open-market |
| C. | encourage people to held more cash (currency in circulation) |
| D. | increase the government spending |
| Answer» C. encourage people to held more cash (currency in circulation) | |
| 340. |
Point out which of the following is not an instrument of fiscal policy: |
| A. | an increase in the interest rate |
| B. | a cut in unemployment compensation |
| C. | an increase in tobacco taxes |
| D. | a cut in the marginal rates of irpf |
| Answer» B. a cut in unemployment compensation | |
| 341. |
An increase in the interest rate1 |
| A. | shifts the aggregate demand curve to the left |
| B. | shifts the aggregate demand curve to the right |
| C. | has no effect |
| D. | moves the economy along the aggregate demand curve |
| Answer» B. shifts the aggregate demand curve to the right | |
| 342. |
As higher is the MPS |
| A. | lower is the multiplier. |
| B. | higher is the investment spending |
| C. | higher is the equilibrium income. |
| D. | all the answers are right |
| Answer» B. higher is the investment spending | |
| 343. |
The function of investment spending shifts to the left if: |
| A. | the interest rate rises |
| B. | the interest rate falls |
| C. | business expectations improve |
| D. | business expectations get worse |
| Answer» E. | |
| 344. |
The government spending multiplier is as higher as: |
| A. | higher is the government spending |
| B. | higher is the mpc |
| C. | lower is the mpc |
| D. | lower is the tax revenue |
| Answer» C. lower is the mpc | |
| 345. |
Economists use the term shocks to mean |
| A. | unexpected government actions that affect the economy. |
| B. | typically, unpredictable forces that have major impacts on the economy. |
| C. | sudden rises in oil prices. |
| D. | the business cycles. |
| Answer» C. sudden rises in oil prices. | |
| 346. |
When aggregate economic activity is declining, the economy is said to be in |
| A. | a contraction. |
| B. | an expansion. |
| C. | a trough. |
| D. | a turning point. |
| Answer» B. an expansion. | |
| 347. |
Industries that are extremely sensitive to the business cycle are the |
| A. | durable goods and service sectors. |
| B. | nondurable goods and service sectors. |
| C. | capital goods and nondurable goods sectors. |
| D. | capital goods and durable goods sectors. |
| Answer» E. | |
| 348. |
Peaks and troughs of the business cycle are known collectively as |
| A. | volatility. |
| B. | turning points. |
| C. | equilibrium points. |
| D. | real business cycle events. |
| Answer» C. equilibrium points. | |
| 349. |
In a boom: |
| A. | unemployment is likely to fall |
| B. | prices are likely to fall |
| C. | demand is likely to fall |
| D. | imports are likely to fall |
| Answer» B. prices are likely to fall | |
| 350. |
. When aggregate economic activity is increasing, the economy is said to be in |
| A. | an expansion. |
| B. | a contraction. |
| C. | a peak. |
| D. | a turning point. |
| Answer» B. a contraction. | |