MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 69 Mcqs, each offering curated multiple-choice questions to sharpen your Indian Economy knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which is known as the third pillar in international economic relations? |
| A. | IMF |
| B. | World Bank |
| C. | WTO |
| D. | GATT |
| Answer» D. GATT | |
| 2. |
In which of the following years was General Agreement of Tarriffs and Trade (GATT) absorbed into the World Trade Organization (WTO)? |
| A. | 1991 |
| B. | 1995 |
| C. | 2000 |
| D. | 2005 |
| Answer» C. 2000 | |
| 3. |
Which of the following is a features of WTO?i . Its main aim is to liberalise international trade.ii . It was started at the initiative of the developed countries.iii. The rules of WTO are framed to favour the developing countries.iv . It establishes rules regarding international trade. |
| A. | Only (i), (ii) and (iv) |
| B. | Only (ii) and (iii) |
| C. | Only (iii) and (iv) |
| D. | All of these |
| Answer» B. Only (ii) and (iii) | |
| 4. |
In which one of the following places was Aisa's first Export Processing Zone (EPZ) set up? |
| A. | Kandla |
| B. | Cochin |
| C. | Surat |
| D. | Santa Cruz |
| Answer» B. Cochin | |
| 5. |
ECGC is related to |
| A. | Export promotion |
| B. | Export financing and insurance |
| C. | Export quality certification |
| D. | Export statistics publication |
| Answer» C. Export quality certification | |
| 6. |
NAMA-11 group of countries frequently appears in the news in the context of the affairs of which one of the followings? |
| A. | Nuclear Supplier Group |
| B. | World Bank |
| C. | World Economic Forum |
| D. | World Trade Organisation |
| Answer» E. | |
| 7. |
'MFN Claues' is one of the main pillars on which |
| A. | WTO is based |
| B. | IMF is based |
| C. | IBRD is based |
| D. | IDA based |
| Answer» B. IMF is based | |
| 8. |
A 'Letter of Credit' is produced by |
| A. | An exporter |
| B. | An importer |
| C. | Both by exporter and importer |
| D. | Shipping company |
| Answer» D. Shipping company | |
| 9. |
How many countries are members of WTO ? |
| A. | 149 |
| B. | 100 |
| C. | 120 |
| D. | 200 |
| Answer» B. 100 | |
| 10. |
At present as per government rulings, the maximum area allowed for a Special Economic Zone (SEZ) is |
| A. | 2000 hectares |
| B. | 3000 hectares |
| C. | 4000 hectares |
| D. | 5000 hectares |
| Answer» E. | |
| 11. |
Invisibe export means export of |
| A. | Services |
| B. | Prohibitd goods |
| C. | Unrecorded goods |
| D. | Goods through smugging |
| Answer» B. Prohibitd goods | |
| 12. |
The headquarter of World Trade Organisation (WTO) are at |
| A. | Doha |
| B. | Geneva |
| C. | Rome |
| D. | New York |
| Answer» C. Rome | |
| 13. |
Which among the following is the largest trading Government company of India? |
| A. | Food Corporation of India |
| B. | Mineral and Metal Trading Corporation |
| C. | Khadi and Village Industries Corporation |
| D. | Trade Fair Authority of India |
| Answer» C. Khadi and Village Industries Corporation | |
| 14. |
Special Economic Zone (SEZ) Act become effective in |
| A. | 2004 |
| B. | 2005 |
| C. | 2006 |
| D. | 2007 |
| Answer» D. 2007 | |
| 15. |
The practive of selling goods in a foreign country at a price below their domestic selling price is called |
| A. | Diplomacy |
| B. | Discrimination |
| C. | Dumping |
| D. | Double pricing |
| Answer» D. Double pricing | |
| 16. |
What is the purpose of the India Brand Equity Fund? |
| A. | To promote in bound tourism |
| B. | To make 'Made in India' a lebel of quality |
| C. | To organise trade fairs |
| D. | To provide venture capital to IT sector |
| Answer» C. To organise trade fairs | |
| 17. |
Assertion (A) The rate of growth of India's exports has shown an appreciable increase after 1991.Reason (R) The Government of India has resorted to devaluationCode |
| A. | Both (A) and (R) are true and (R) is the correct explanation of (A) |
| B. | Both (A) and (R) are true but (R) is not a correct explanation of (A) |
| C. | (A) is true but (R) is false |
| D. | (A) is false but (R) is true |
| Answer» B. Both (A) and (R) are true but (R) is not a correct explanation of (A) | |
| 18. |
Free Trade Policy refers to a policy where there is |
| A. | absent of tariff |
| B. | restriction on the movements of goods |
| C. | existence of anti-dumping policy |
| D. | encouragement for balances growth |
| Answer» B. restriction on the movements of goods | |
| 19. |
FERA in India has been replaced by |
| A. | FERA |
| B. | FEMA |
| C. | FENA |
| D. | FETA |
| Answer» C. FENA | |
| 20. |
A trade policy consists of |
| A. | Export-Import Policy |
| B. | Licencing Policy |
| C. | Foreign Exchange Policy |
| D. | Balance of Payment Policy |
| Answer» B. Licencing Policy | |
| 21. |
Many a time we hear about SEZ in newspaper/ magzines.What is the full form of SEZ? |
| A. | Special Economic Zone |
| B. | Small Economic Zone |
| C. | Special Enforcement Zone |
| D. | Service and Economic Zone |
| Answer» B. Small Economic Zone | |
| 22. |
Which one of the following institution is related to export financing and insurance? |
| A. | ECGC |
| B. | GAIL |
| C. | CBDT |
| D. | IDBI |
| Answer» B. GAIL | |
| 23. |
Assertion (A) Balance of payment represents better picture of a country economic transactions with the rest of the world than balance of Trade. Reason (R) Balance of payment takes into account the exchange of both visible and invisible items whereas balance of trade does notCode |
| A. | Both (A) and (R) are true and (R) is the correct explanation of (A) |
| B. | Both (A) and (R) are true but (R) is not a correct explanation of (A) |
| C. | (A) is true but (R) is false |
| D. | (A) is false but (R) is true |
| Answer» B. Both (A) and (R) are true but (R) is not a correct explanation of (A) | |
| 24. |
'Trade Gap' means |
| A. | Gap between total imports and total exports |
| B. | Gap between total GDP and total consumption |
| C. | Gap between available liquidity and expected demand |
| D. | Gap between budgeted revenue collection and actual collection of the same |
| Answer» B. Gap between total GDP and total consumption | |
| 25. |
Which one of the following statements is correct with reference to FEMA in India? |
| A. | The Foreign Exchange Regulating Act (FERA) was replaced by Foreign Exchange Management Act (FEMA) in the year 2001 |
| B. | FERA was given a sunset clause of one year till 31st may, 2002 to enable Enforcement Directorate to complete the investigation of pending issues |
| C. | Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence |
| D. | As per the new dispensation, Enforcement Directorate can arrest and prosecute the people for the violation of foreign exchange rule |
| Answer» C. Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence | |
| 26. |
We very frequently read about Special Economic Zones (SEZs) in newspapers. These SEZs were established with which of the following objectives?1. To attract foreign investment directly.2. To protect domestic market from direct competition from multinationals.3. To provide more capital to agricultural and allied activities.Codes |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 3 |
| D. | All 1, 2 and 3 |
| Answer» B. Only 2 | |
| 27. |
The Word Trade Organisation (WTO) was formed in |
| A. | 1991 |
| B. | 1995 |
| C. | 1997 |
| D. | 1999 |
| Answer» C. 1997 | |
| 28. |
Which one of the following sequences is in correct chronological order that ultimately led to the setting up of World Trade Organisation (WTO)? |
| A. | GATT, Uruguay Rounds, Dunkel Draft, Marrakesh Treaty |
| B. | GATT, Dunkel Draft, Uruguay Rounds, Marrakesh Treaty |
| C. | Uruguay Rounds, GATT, Dunkel Draft, Marrakesh Treaty |
| D. | GATT, Uruguay Rounds, Marrakesh Treaty, Dunkel Draft |
| Answer» B. GATT, Dunkel Draft, Uruguay Rounds, Marrakesh Treaty | |
| 29. |
Foreign exchange rate means the rate at which the currency of one country can be traded for |
| A. | The currency of any other country in the foreign exchange market |
| B. | US Dollar, which is the strongest currency in any foreign exchange market |
| C. | A fixed basket of currencies consisting of Dollar, Yen and Pound |
| D. | The currency of any other country as determined by the International Monetary Fund |
| Answer» B. US Dollar, which is the strongest currency in any foreign exchange market | |
| 30. |
The SEZ Act 2005, which came into effect in February, 2006 has certain objectives. In this context, consider the following1. Development of infrastructure facilities.2. Promotion of investment from foreign sources.3. Promotion of export of services only.Which of the above are objectives of this Act? |
| A. | 1 and 2 only |
| B. | 3 only |
| C. | 2 and 3 only |
| D. | 1, 2 and 3 |
| Answer» E. | |
| 31. |
When was India's foreign trade liberalised? |
| A. | 1960 |
| B. | 1970 |
| C. | 1980 |
| D. | 1990 |
| Answer» E. | |
| 32. |
The National Institute for Agriculture Marketing (NIAM) |
| A. | Jaipur |
| B. | New Delhi |
| C. | Nagpur |
| D. | Hyderabad |
| Answer» B. New Delhi | |
| 33. |
Free trade zone is one |
| A. | where trade is done without restriction |
| B. | where any enterpreneur i free to start industries |
| C. | where infrastructural facilities were provided free to enterpreneurs by the Government |
| D. | where industries are free from excise duties and produce for exports |
| Answer» B. where any enterpreneur i free to start industries | |
| 34. |
Many a time we come across a term in financial newspaper 'Balance of Payments'. What does it really reflect? |
| A. | It is the statements of receipt from foreign countries and payments made to foreign countries |
| B. | It is the statement of the total value of GDP and share of imports in it in terms of the percentage of GDP |
| C. | It is the statement of Total receipts of the Government and its share in total GDP in terms of percentage |
| D. | Only a and b |
| Answer» B. It is the statement of the total value of GDP and share of imports in it in terms of the percentage of GDP | |
| 35. |
The earlier name of the WTO are |
| A. | UNCTAD |
| B. | GATT |
| C. | UNIDO |
| D. | OECD |
| Answer» C. UNIDO | |
| 36. |
The tax on import and export is known as |
| A. | Income tax |
| B. | Trade tax |
| C. | Custom tax |
| D. | None of these |
| Answer» D. None of these | |
| 37. |
TRIPS and TRIMS are the term associated with |
| A. | IMF |
| B. | WTO |
| C. | IBRD |
| D. | IDA |
| Answer» C. IBRD | |
| 38. |
SEZ act was passed by the Parliament in the year |
| A. | 2004 |
| B. | 2005 |
| C. | 2006 |
| D. | None of these |
| Answer» C. 2006 | |
| 39. |
Which of the following organisations is involved in providing the insurance against various rirks to the exportes? |
| A. | Reserve Bank of India (RBI) |
| B. | State trading Corporation of Inida (STCI) |
| C. | EXIM Bank |
| D. | Exort Credit and Guarantee Corporation (ECGC) |
| Answer» D. Exort Credit and Guarantee Corporation (ECGC) | |
| 40. |
Which is known as the |
| A. | IMF |
| B. | World Bank |
| C. | WTO |
| D. | GATT |
| Answer» D. GATT | |
| 41. |
In which one of the following places was |
| A. | Kandla |
| B. | Cochin |
| C. | Surat |
| D. | Santa Cruz |
| Answer» B. Cochin | |
| 42. |
Special Economic Zone (SEZ) |
| A. | 2004 |
| B. | 2005 |
| C. | 2006 |
| D. | 2007 |
| Answer» D. 2007 | |
| 43. |
The exchange of commodities between two countries is referred as |
| A. | Balance of trade |
| B. | Bilateral trade |
| C. | Volume of trade |
| D. | Multilateral trade |
| Answer» C. Volume of trade | |
| 44. |
NAMA-11 |
| A. | Nuclear Supplier Group |
| B. | World Bank |
| C. | World Economic Forum |
| D. | World Trade Organisation |
| Answer» E. | |
| 45. |
How many countries are |
| A. | 149 |
| B. | 100 |
| C. | 120 |
| D. | 200 |
| Answer» B. 100 | |
| 46. |
The practive of selling goods in a foreign country at a price below their |
| A. | Diplomacy |
| B. | Discrimination |
| C. | Dumping |
| D. | Double pricing |
| Answer» D. Double pricing | |
| 47. |
What is the purpose of the |
| A. | To promote in bound tourism |
| B. | To make 'Made in India' a lebel of quality |
| C. | To organise trade fairs |
| D. | To provide venture capital to IT sector |
| Answer» C. To organise trade fairs | |
| 48. |
At present as per government rulings, the maximum area allowed for a |
| A. | 2000 hectares |
| B. | 3000 hectares |
| C. | 4000 hectares |
| D. | 5000 hectares |
| Answer» E. | |
| 49. |
Invisibe export |
| A. | Services |
| B. | Prohibitd goods |
| C. | Unrecorded goods |
| D. | Goods through smugging |
| Answer» B. Prohibitd goods | |
| 50. |
ECGC |
| A. | Export promotion |
| B. | Export financing and insurance |
| C. | Export quality certification |
| D. | Export statistics publication |
| Answer» C. Export quality certification | |