Q.N.

Question Option A Option B Option C Option D Ans

1 The foreign investment in FDI FII BOP SDR A

productive assets and
participation in management as
stake holders in business
enterprises is
2 The IEC number is issued by the Central State Government Director General Commerce C
government of Foreign trade ministry
(DGFT)
3 The IEC number is a number with 7 digits 8 digits 9 digits 10 digits D
4 The geographically distributed EOU SEZ AEZ FTZ B
area or zone where the economic
laws are more liberal as compared
to other parts of the country is
called
5 The total value of the products Gross Domestic Gross National National Income Per capita A
and services marketed by a nation Product. Product income.
is called:
6 Govt. policy about exports and Monetary policy Fiscal policy Exim policy Finance policy C
imports is called:
7 What does CCIE stand for?. Chief Controller Central Cottage Control on Cotton Commissioner of A
of Imports and Industries Imports and Central Imports
Exports Exports Exports and Exports
8 Which one of the following Asia Europe Africa North America A
continents accounts for the
maximum share in exports from
India?
9 Which among the following products Wheat Rice Sugar Pulses D
is usually not exported from
India?
10 Brent index is associated with Crude oil prices Copper future Gold future prices shipping rate A
prices index
11 Which of the following items under Gems and Engineering Chemical and Handicrafts A
manufacturing goods sector had the jewellery goods related products
highest share in India‟s exports ?
12 Which one of the following ECGC GAIL CBDT IDBI A
institution is related to export
financing and insurance?
13 The tenure of the Foreign Trade 3 years. 5 years 1 year. 7 years. B
policy is
14 The Foreign Trade policy was first 1981 1947 1992 2000 C
introduced in the year:
15 More expansion of foreign direct Money Demand Employment Unemployment c
investment can boost circulation
16 When a country is specialized in Agreement Interdependence Correlation Dependence B
particular good and then trade
with other countries is called
17 Excise duty exemption on exports Finished Components only Finished products Imported items C
is available for duty paid on products only and components
18 Duty Drawback is available for Import duty on Central excise Import duty and Import duty, C
imported on indigenous central excise on central excise
components components indigenous and VAT
components
19 The protection against the new Patent Trade mark Copy right Technology A
invention of a product or process
for a defined period is
20 The export proceeds shall be Any foreign Non- convertible Convertible Home currency C
realized in currency currency currency only
21 The Director General of Foreign Central State Government Ministry of Chief justice of C
trade is appointed by Government commerce the Supreme
Court
22 The geographically distributed EOU SEZ FTZ AEZ B
area or zone where the economic
laws are more liberal as compared
to other parts of the country is
called
23 Bill of Lading is issued by the Captain of the Shipping company Customs Consignor B
vessel authorities
24 The insurance policy that covers General ECGC Marine insurance Fire insurance B
exporters against commercial and insurance
political risk is
25 The objectives of import duty To raise income To restrict To encourage To raise income D
is/are for the imports exports and restrict
government imports
26 The General Agreement on Tariff Cross Border North American Mutlilateral World Trade D
and Trade (GATT) was replaced by Trade Group Free Trade Agreement Organisation
Agreement (WTO)
(NAFTA)
27 A tax imposed on certain type of A Tariff A Surcharge A severance tax A Subsidy A
imported goods is
28 EXIM policy is also called as Foreign trade Export policy Import policy Trade policy A
 Policy
29 In which year FERA was replaced by 1991 1990 1999 2001 C
FEMA
30 Where the headquarters of DGFT is Mumbai Ahmadabad New Delhi Chennai C
situated?

31 In which of the following basic Local and Regional and Internal and Financial and C
categories can business Regional National External. Nonfinancial
environment be divided?
32 Economic environment refers to all political. natural economic social C
forces which have a _____.
33 . ____ environment is beyond the Internal. External Micro. Macro B
control of the business
34 Micro environment is also called General operating economics political B
as ________. environment environment. environment. environment
35 Macro environment is also called General operating economics political A
as _______. environment environment. environment. environment
36 The environment which is close to Internal. External micro. macro C
business and affect its capacity
to work is known as
___environment.
37 Factors that create opportunities Internal. External micro. macro D
and threats to business units is
known as_______.
38 Internal factors affecting a controllable. uncontrollable relevant. global. A
business environment also are factors.
referred to ____factors.
39 External factors affecting a controllable. uncontrollable relevant. global. B
business environment also be factors.
referred to ___factors.
40 The economic system in which capitalism. socialism. democratic. republic. A
business units or factors of
production are privately owned and
governed is called as______.
41 The economic system in which both capitalism. socialism. democratic. republic. B
public and private sectors co
exist is known as ___economy.
42 Fiscal policy is called as ______ monetary. budgetary. industrial. economic. B
policy.
43 India is good example for socialist. mixed . capitalist. communist. B
________economy.
44 Which of the following institution World Bank International World Trade United Nations C
is associated with Dunkel Monetary Fund Organization Organization
Proposals?
45 The micro environment consists Technological Political Economic Public, D
______. Environment. Environment. Environment. middlemen,
consumers &
competitors.
46 Where is the headquarter of the New York Washington DC Geneva Austria C
WTO?
47 In the PEST framework for Ethical Ecological Educational Economic D
environmental analysis what does
the letter E stand for?
48 Remote environment is an another Micro Macro Internal External B
name of __________ environment environment environment environment
49 A stable, honest and efficient Business General Economic Natural A
political system is a primary environment conditions environment
factor for the growth of
50 ___________ is an open form of Parliamentary Government Legal environment Political A
government. System environment environment
51 China is the biggest example Capitalism Mixed economy Laissez Faire Socialism D
_________
52 The term _________ relates to Priority right Intellectual Tariff & Trade Act Madrid agreement B
patent, trademarks, copyrights and property right
trade secrets.
53 __________ is a set of traditional Cultural Social Socio - cultural Economic C
beliefs and values which are environment environment environment
passed and shared among different
societies
54 __________ is the foundation of Language Customs Education Religion A
culture
55 If the Balance of Payment of a World Bank World Trade International Asian C
country is adverse, then which Organization Monetary Fund Development Bank
institution will help that
country?
56 Under International strategy, Valuable skills products Core acthitecture Valuable skills D
firms try to create value by and products
transfering ---------- to foreign
markets indigenous competitors
lack these skills and products.
57 Multi domestic firms extensively Creation Different Research & Both (A) & (B) B
customize both their product activities cultural Development
offerings and their marketing differences
 strategy to suit -----.

58 The factors that determine whether Cost of Strategic Product Life cycle All of the above D
a company has invest abroad in Production and rivalary
the form of FDI are: Location
59 When was IMF established? Dec. 27,1945 Jan. 30, 1947 Jan.1, 1946 Sept. 24, 1947 A
60 Which of the following currency Japanese Yen Euro US Dollar British Pound C
has largest weightage in the
determination of the value of the
SDR?
1 A tariff: Increases the Reduces the Has no effect on (a) and (c) of B
volume of trade volume of trade volume of trade above
2 A tariff is: A restriction on Limit on the Tax on imports (b) and (c) of C
the number of amount of above
export firms imported goods
3 Dumping refers to: Buying goods at Expensive goods Reducing tariffs Sale of goods D
low prices selling for low abroad at low a
abroad and prices price, below
selling at their cost and
higher prices price in home
locally market
4 It is drawback of protection: Consumers have Producerrs get Quality of goods All of the above D
to pay higher higher profits may be affected
prices
5 It is drawback of free trade: Prices of local Government National resources (a) and (b) of B
goods rise looses income are underutilized above
from custom
duties
6 Members of ________ agree to the free trade areas customs unions economic blocs regional B
tariffs and non-tariff barriers alliances
that are applied to imports from
nonmember countries.
7 Which of the following terms is trade diversion trade creation trade autonomy free trade A
used to refer to a nation in an
economic bloc ceasing to trade
with a non-member nation?
8 Which of the following is not a A quota on A tax equal to A voluntary export A regulation B
non-tariff barrier? apparel 12% of value on restraint on cars. requiring
imported oil. government
agencies to
 favor
domestically
producers.
9 The main difference between a A quota reduces A tariff raises A quota does not A tariff D
tariff and a quota is the quantity of the price of harm domestic generates
imports more imports more consumers. government
than a tariff than a quota. revenue, while a
quota, unless it
is sold, does
not.
10 A government procurement Government Government shows Government Government B
regulation or practice constitutes agencies are a preference for requires that purchases are
a nontariff barrier when required to domestic sellers goods that it financed by tax
purchase from over foreign purchases meet a receipts.
the lowest sellers. uniform safety
bidder. standard.
11 Import quotas are most commonly By taxing By auctioning By granting import By granting D
administered imports import licenses rights to domestic import rights to
to the highest firms. foreign firms or
bidder. governments.
12 The imposition of a tariff on Improving terms Higher steel Lower profits for Higher B
imported steel for the home of trade and prices and domestic steel unemployment for
country results in: rising volume of falling steel companies domestic steel
trade consumption workers
13 Suppose the government grants a Consumption Redistribution Revenue effect Protective D
subsidy to domestic producers of effect effect effect
an import-competing good. The
subsidy tends to result in
deadweight losses for the domestic
economy in the form of the:
14 Tariffs and quotas on imports tend Permit less Distort choices Result in higher Redistribute B
to involve larger sacrifices in efficient home for domestic tax rates for revenue from
national welfare than would occur production consumers domestic residents domestic
under domestic subsidies. This is producers to
because, unlike domestic consumers
subsidies, import tariffs and
quotas:
15 Suppose the government grants a Elastic in Inelastic in Unit elastic in None of the A
subsidy to its export firms that response to the response to the response to the above
permits them to charge lower price reduction price reduction price reduction
prices on goods sold abroad. The
export revenue of these firms
 would rise if the foreign demand
is:

16 Because export subsidies tend to Export revenues Export revenues Terms of trade Terms of trade C
result in domestic exporters will decrease will rise will worsen will improve
charging lower prices on their
goods sold overseas, the home
country‟s:
17 Which trade restriction stipulates Import quota Orderly Local content Government C
the percentage of a product‟s marketing requirement procurement
total value that must be produced agreement policy
domestically in order for that
product to be sold domestically?
18 Compared to an import quota, an A tariff has no Foreign firms Tariffs are Quotas do not B
equivalent tariff may provide a deadweight loss may absorb the effective only if result in
less certain amount of protection in terms of tariff by home demand is increases in the
for home producers since: production and offering exports perfectly elastic price of the
consumption at lower prices imported good
19 A firm that faces problems of Can charge Earns revenues Can sell at that Is able to force B
falling sales and excess higher prices in on foreign sales price where foreign prices
productive capacity might resort markets that are that at least domestic and below marginal
to international dumping if it: elastic to price cover variable foreign demand production costs
changes costs elasticities
equate
20 A producer successfully practicing A relatively A relatively The same price in Different prices A
international dumping would higher price in higher price in all markets, in all markets,
charge: the more the more elastic regardless of regardless of
inelastic market market their elasticities their
elasticities
21 A specification of a maximum Domestic subsidy Export subsidy Import quota Export quota C
amount of a foreign produced good
that will be allowed to enter the
country over a given time period
is referred to as a(n):
22 Subsidies to domestic firms may An increase in Higher volume of Higher volume of Increase in B
lead to: prices exports imports welfare of the
trading partner
23 Concerning international dumping, Average variable Average fixed Marginal cost Total cost A
many economists argue that “fair cost cost
value” should be based on:
24 A specific tariff is Any tax on a An import tax A requirement to A tax on imports D
particular that must be pay the government defined as an
imported good paid in kind a specified amount of
(as opposed to (giving the fraction of the currency per
one on all government the monetary value of unit of the good
imports). good itself). an imported good.
25 A tariff on imports benefits They get the It raises the It prevents It reduces their B
domestic producers of the imported tariff revenue. price for which imports from producer
good because they can sell rising above a surplus, making
their product on specified them more
the domestic quantity. efficient.
market.
26 When a large country levies a The world price Demanders of the The domestic price All of the D
tariff on imports falls. good on the rises by less than above.
domestic market the tariff.
are hurt
27 What are countervailing measures? Measures which a Measures which a Measures which a Measures which a C
State may national State may initiate national
initiate against government may against another government may
another State initiate against State when that initiate against
when that other another State other State has another State
State has when that other illegally when that other
legally State has not subsidised any of State has not
subsidised any subsidised any its domestic illegally
of its domestic of its domestic industries subsidised any
industries industries its domestic
industries
28 Which of the following is the To expand the To take the To develop and All of the above D
purpose for doing business in the oeprations advantage of the sell the products
international markets? beyound the tax benefits of for a particular
local the foreign geographical
geographical country location and
limits Existence of
imperfect markets
29 Which of the following is not a A quota on A tax equal to A voluntary export A regulation B
non-tariff barrier? apparel 12% of value on restraint on cars. requiring
imported oil. government
agencies to
favor
domestically
producers.
30 The main difference between a A quota reduces A tariff raises A quota does not A tariff D
tariff and a quota is the quantity of the price of harm domestic generates
imports more imports more consumers. government
than a tariff. than a quota. revenue, while a
quota, unless it
is sold, does
not.
31 A government procurement Government Government shows Government Government B
regulation or practice constitutes agencies are a preference for purchases are requires that
a nontariff barrier when required to domestic sellers financed by tax goods that it
purchase from over foreign receipts. purchases meet a
the lowest sellers. uniform safety
bidder. standard.
32 Import quotas are most commonly By permitting By taxing By granting import By granting D
administered all imports imports. rights to domestic import rights to
until the quota firms. foreign firms or
is filled for governments.
the year, then
none after that.
33 Which of the following will cause A decrease in A decrease in A rise in the Nothing: the B
the tariff equivalent of a quota domestic demand domestic supply world price. tariff
to increase in a small country? (the demand (the supply equivalent of a
curving shifting curving shifting quota is fixed
left). left). by law.
34 What happens if a quota has been The country The government The domestic price Quota rents D
keeping the domestic price above begins to export must subsidize rises above the become zero.
the world price, but then the the good. imports to keep world price, to
world price rises above what has them from keep the tariff-
been the domestic price? falling below equivalent of the
the quota. quota constant.
35 Terms of trade of developing They export They import They export few (a) and (b) of D
countries are generally primary goods value added goods above
unfavourable because: goods
36 In a free trade world in which no Reduced real Decreased Increased Reduced real GDP C
restrictions exist, international living standard efficiency efficiency
trade will lead to:
37 International trade is possible Generalization Specialization Specialization in All of the above C
primarily through: in production of in production of production of a
all goods one good few goods
38 A country that does not trade with Developed Closed economy Independent None of the B
other countries is called: economy economy above
39 The total value of the products Gross Domestic Gross National National Income Per capita A
and services marketed by a nation Product. Product income.
is called:
40 Govt. policy about exports and Monetary policy Fiscal policy Commercial policy Finance policy C
imports is called:
41 What would encourage trade between Different tax Frontier checks National Reduced tariffs D
two countries: system currencies
42 This is an advantage of foreign We can preserve New technology People need not go We can get B
trade: our natural comes to the abroad foreign
resources country currencies
43 Foreign trade: Increases Increases Increases All of the above D
employment international competition
opportunities mobility of
labour
44 Foreign trade: Benefits Benefits Benefits Benefits all D
developed underdeveloped democratic countries
countries countries countries
45 Foreign trade has the advantage: Trading Can import Can import (b) and (c) of D
countries get scarce raw machinery and above
foreign exchange materials technology
46 The tenure of the Foreign Trade 3 years. 5 years 1 year. 7 years. B
policy is
47 Foreign companies undertake ----- Consortia Trunkey Strategic alliance Subsdiary B
projects which are based on the
principle of build, operate and
transfer
48 In 1999, Bayer AG Germany & Joint venture Strategic Turnkey International D
Ranbaxy signed an agreement for - alliance Strategic
---- where Bayer obtained alliance
exclusive development and world
wide marketing to formulation of
ciprofloxacin.
49 The export strategy provides High Production High High selective None of the A
focused attention to products that capacity distribution capacity above
have ---- in the country and capacity
potential for export
competitiveness
50 The Foreign Trade policy was first 1981 1947 1992 2000 C
introduced in the year:
51 Which one among the following is Precious metals Fertilizers – Capital goods – Electronic goods A
the correct descending sequence of and stones – Precious metals Electronic goods – Capital goods
India‟s import of commodities in Electronic goods and stones – – Precious metals – Fertilizers –
terms of value? – Capital goods Electronic and stones – Precious metals
– Fertilizers goods – Capital Fertilizers and stones
goods
52 Which of the following is not an Promote import Promote exports Reduce the customs Infuse high C
objective of export promotion of capital goods from India duty collection technology
capital goods scheme ? to enhance from manufacturers capital
export equipment in the
manufacturing
sector
53 Which one of the following Asia Europe Africa North America A
continents accounts for the
maximum share in exports from
India?
54 Which among the following products Wheat Rice Sugar Pulses D
is usually not exported from
India?
55 Brent index is associated with Crude oil prices Copper future Gold future prices shipping rate A
prices index
56 During 2018-19, which of the Gems and Engineering Chemical and Handicrafts A
following items under jewellery goods related products
manufacturing goods sector had the
highest share in India‟s exports ?
57 Which one of the following ECGC GAIL CBDT IDBI A
institution is related to export
financing and insurance?
58 Trade Related Investment Measures Measures that Measures that Discouraging Discouraging B
(TRIMS) doesn‟t apply for affect trade in lead to measures that measures that
goods. restrictions in limit a company‟s limit a
quantities. imports. company‟s
exports.
59 General Agreement on Trade in Services Transaction of Individuals Consumers/firms B
Services will not be applicable to supplied from goods across the traveling from own making use of a
one country to border – Export country to supply service in
another – cross Import services in another country
border supply another – presence – consumption
of natural abroad
persons.
60 GATT 1947 The fundamental Most favoured National Total restrictions Only (A) & (B) D
principles of agreement are as nation treatment except on export/import
 follows: treatement by payment of of rice, tea,
signatory customs duty at tobacco, diamonds,
members import time garment leather
etc.
61 The member countries of WTO have TRIMs TripS SAPTA BoP B
moved to "Poduct Patent Regime"
under
62 Quantitative restriction on 01-04-1990 01-04-1991 01-04-2000 01-04-2201 D
fertilizer imports have been
removed since;
63 What is the underlying It facilitates It resolves It facilitates the It acts as an D
characteristic of the WTO? economic co- disputes between development of umbrella
operation economic trade less developed institution that
between blocks countries regulates the
different agreements
countries concluded at the
Uruguay round,
the
organisation‟s
ultimate goal
being the
promotion of
free
international
trade
64 Does the WTO come with its own No, the WTO No, the WTO Yes, the WTO Yes, the WTO D
institutional framework? depends on the provides certain provides a certain provides a
relevant institutional institutional common
frameworks of arrangements but framework which institutional
national only on an ad changes depending framework for
governments hoc basis on the nature of the
free trade implementation
agreements of free trade
agreements
65 What are the three key A Senate, a A Trade An Executive A Board of C
„components‟ of the WTO? Judiciary and a Commission, a apparatus, a Governors, the
Directorate Dispute Legislative Assembly of
Settlement Body apparatus and an Member States
and a Council of Enforcement and a Steering
Ministers apparatus Committee
66 Does the WTO apply its framework Yes, the WTO Yes, the WTO No, the WTO makes No, the WTO C
in exactly the same fashion applies its applies its allowance for makes allowance
throughout the world? framework in framework in regional variation for variation in
exactly the same exactly the same the case of
way throughout way around the economically
the world world, unless it stronger
deals with trade countries
blocks
67 What are the two main functions of The promotion of The The promotion of The D
the WTO? free trade and administration world peace, administration
economic of the WTO economic stability of the WTO‟s
liberalism agreements and and financial co- institutional
the resolution operation framework and
of international the promotion of
trade disputes economic co-
operation
amongst its
members
68 Theoretically, what is the most The Committee on The Council for The General The Ministerial D
significant organ of the WTO? Trade and Trade in Goods Council Conference
Development
69 Practically, what is the most The Committee on The Council for The General The Ministerial C
significant organ of the WTO? Trade and Trade in Goods Council Conference
Development
70 Where is provision made with In the WTO In the GATT In the UN Charter In the WTO A
regard to the WTO‟s institutional Agreement Agreement on
arrangements? Subsidies and
Countervailing
Measures
71 With regard to the WTO, subsidies The GATT and the The Reform The North American The A
are covered in two separate Agreement on Treaty and the Free Trade International
international economic law Subsidies and Treaty of Rome Agreement and the Monetary Fund‟s
agreements. Which are they? Countervailing Organization of Articles of
Measures American States Agreement and
Charter the European
Central Bank‟s
Statute
72 Which of the following is not a United States China Russia Iran D
member of the WTO?
73 The WTO Agreement related to TRIPS. TRIMS. GATS. TCA. B
investment measures is:
74 Agreement on Agriculture (AOA) Easy market Domestic To make exports All of the above D
relates to access support- artificially
subsidies and competitive i.e.
other programmes export subsidies
guarantee farm
gate prices and
farmers incomes
75 ATC stands for Authourised Agreement on All to co-operate None of the B
Textile control textiles and above
clothing
76 Agreement on textile and clothing Encompasses Establsihment of Establishment of All of the above D
(ATC) 1995-2004 is a transitional yarns, fabrics, TMB (Textile TMB
instrument, covering following clothing, monitoring
elements: textile products body)Progreesive
intention of
textiles and
clothing product
into GATT, 1999
rules
77 The present share of India‟s trade less than 1 per 1.2 per cent. 1.5 per cent 1.8 per cent. C
in the world trade is cent.
78 The apex body of the Foreign Trade The Central The State The Ministry of All the above. C
is: Government. Government. Commerce.
79 What does CCIE stand for? Chief Controller Central Cottage Control on Cotton Commissioner of A
of Imports and Industries Imports and Central Imports
Exports Exports. Exports. and Exports
80 The Board of trade is headed by DGFT Export Minister Shipping Manager Minister of D
the Commerce
81 Which apex body of various Trade fair Export Credit Federation of Directorate C
exporters and export promotion authourity of Guarantee Indian exporters general of
organizations in India. India Corporation of organization commercial
India intelliegnce and
stactics
82 EDI system got legal recognition Right to data Electronics act, Information DGFT act, 1999 C
under the act act, 1998 1996 Technology Act,
2000
83 What is the full form of UCPDC Uniform civil Unity for common Uniform customs Uniform customs C
practices for purposes in duty and practice for and purposes for
duty on customs on customs documentary documentary
credits credits
84 FERA was implemented in order to Conserve foreign Enable Have an uniform Facilitate A
exchange and put recognition of civil law external trade
it to judicious foreign exchange and maintain an
utilization orderly growth
of foreign
exchange
85 IEC Number when alloted is valid 2 years from 5 years from 10 years from date It has no expiry D
for aperiod of : date of issue date of issue of issue
86 IEC Number consists of a : 6 digit number 4 digit number 10 digit number None of the C
above
87 The major functions of Export Provide Ensuring Promoting All of the above D
Promotion council (EPC) are: commercially participation in interaction
useful trade fairs and between the
information and exhibitions exporting
assistance to community and
their members governement
88 The list of documents required for Income Tax Bank passbook Company None of the D
making an IEC application is as certificate registration above
follows:
89 Form SOFTEX in respect of export Two copies Three copies Four copies Five copies B
of computer software is to be
submitted in :
90 In order to secure export payments Directorate Apparel Export Rgistration-cum- Export Credit D
against political and economic General of Promotion Mumbership and Guarantee
risks and get finanical assistance Goreign Trade Council (AEPC) certificate (RCMC) Corporation
from institutions, the exporter (DGFT) (ECGC)
must register with:
91 Which of the following is an IBRD IDA IFC All of the above D
institution of World Bank?
92 Which of the following is not an To provide To develop To rehabilitate None of the D
objective of World Bank? guarantee on production war ruined above
private loans facilities in economies
underdeveloped
countries
93 Which of the following is known as IDA IFC IBRD MIGA A
soft loan window of the World
Bank?
94 The investment arm of the world IDA IFC IBRD MIGA B
bank is
95 The insurance arm of world bank is IDA IFC IBRD MIGA D
96 What is the role of the IMF? It controls the It acts as a It observes world It seeks to C
budgets of forum for exchange rates, promote free
 national international balance of international
governments economics payments and trade
multilateral
payments
97 What is the IMF‟s primary The overall The fixation of The promotion of The promotion of A
objective? promotion of the value of free trade its policies in
world trade world currencies certain
countries around
the world
98 In world economic matters States States have States do not States oppose the States may not D
are not always to correspond to different have the IMF‟s policies always have the
the calls of the IMF. Why is this? agendas political will same interests
to follow the as the IMF
IMF‟s calls
99 There are two schools of thought Realism Parochialism Legalism Interprevitism D
in the interpretation of the IMF‟s
Articles of Agreement. Which one
has prevailed?
100 What are the forms of assistance Technical and Political and Political and Technical and A
that the World Bank provides to financial financial economic military
its members?
101 The term World Bank refers to IBRD IDA Both IBRD and IDA IFC C
102 IBRD lending is not available for middle income low income multilateral developed C
countries countries agencies countries
103 The eligibility to borrow from IDA relative poverty lack of good policy all the above D
is based on creditworthiness performance
to borrow on
market terms
104 Financial products of IFC does not loans equity risk management none of the D
include participation products above
105 MIGA stands for Multilateral Multilateral Mutual Interest Mutual A
Investment Institutional Guaranteeing Institutional
Guarantee Agency and Government Agencies and Government
Agencies Agencies
106 Guarantee provided by MIGA to transfer expropriation breach of contract all the above D
private investors covers risk of restriction
107 The activities of ADB include project guaranteeing both a and b risk management C
financing loans products
108 The current account of balance of Trade in goods Trade in Income on None of the D
payments does not include services investments above
109 A country has a negative balance Should also be Should be May be positive or Should be same C
of trade. It means the balance of negative positive negative as balance of
payments on current account trade
110 The World Bank Group is made up of 3 5 8 10 B
how many organisations?
111 What is the maximum commission 0.1 0.125 0.15 0.2 B
that an exporter can pay to his
agent as per FEMA guideline
112 Keeping other things constant, Both US interest The US interest The US interest Both US interest B
logic demands that US dollar rate and US rate increases rate decreases rate and US
should definitely become costilier inflation rate whereas the US whereas the US inflation rate
when decreses Inflation rate inflation rate increases
decreases increases
113 Which of the following would Inflation. National income. Exchange rates A tax on income A
likely have the least direct earned from
influence on a country's current foreign stocks
account?
114 The primary component of the balance of balance of money balance of capital unilateral B
current account is the: trade. market flows market flows transfers.
115 An increase in the current account upward. downward no upward or D
deficit will place _______ downward
pressure on the home currency
value, other things equal
116 The ----- of exchange rate Deemand-supply Monetary Asset approach None of the B
forecasting assumes that an approach approach above
increase in the price level
results in the depreciation of a
country's currency and vice versa.
117 Which of the following A firm's A firm's Interest received Interest owned A
transactions reflect economic imports/exports imports/exports from Foreign on foreign funds
exposure but not transction denominated in decominated in investment borrowed
exposure: local currency foreign currency
118 An MNC's degree of translaion The proportion The locations of The accounting All the three D
exposure is dependent on the of its business its foreign methods that it
following: eonducted by subsideiaries uses
foreign
subsidaries
119 Under which of the following Forward hedge Fitires hedge Money market hedge Currency option D
hedging techniques, that an MNC hedge
uses to eliminate its transaction
exposure, the associated cash
flows cannot be determined with
 certainty?

120 Which of the following is NOT a Prepayment A bill of Consigment factoring C

payment method for international exchange
trade?
121 Which of the following is not a To take benefit To reduce the To take benefit of To take D
motive for providing funds in the of the high default risk by the strengthening advantage of
international markets? interest rates diversification of the currency high inflation
rates
122 IF a particular bank is short of a Other Banks International Open market Central Bank of A
foreign currency, the same is corporate operations country
generally bought FIRST from lenders
123 Eurodollars are Currency Deposits Bonds Equity B
124 Which of the floowing alternatives Dollars deposits Certificates These are not Act as A
is not applicable to American in Banks representating actively traded substitute for
Depostitory Receipts the ownership of direct
foreign stocks investement in
foreign stock
125 Equilibrium exchange rates between Quality of Wuantity of Rate remains All of the above D
the curriencies depend on: foreign currency foreign currency dynamic over
demand supply aperiod of time &
is affected by the
inflation rate
126 For which of the following reasons To hedge their To hedge their To sepculate on All of the above D
MNC's do not use the forward imports exports the currency
contracts? movements & to
earn arbitrage
127 Which of the following factors Level of the Length of time Potential None of the D
does not affect the currency call existing spot before variability of the above
option premium? price relative expiration date curency
to strike price
128 Disadvantage of the fixed exchange Risk that the MNC's can engage Exchange rates are None of the D
rate system is government will international held constant above
alter the trade without
exchange rate worry
129 Which is the charecteristic/s of Exchange rate Country having All to co-operate All of the above D
the freely floating exchange rate values are this ysytem is
system? determined by more insulated
the market from inflation
 forces of the other
countires
130 While measuring the "Transaction Net cash flows Currency Currency All of the above D
Exposure" one should consider variability correlations
131 The dgree of Transaction Exposure Accounting Products sold by Remission of Proporation of B
of an MNC is not dependent upon methods followed the susidiary profits to parent business
companyh conductd by
subsidiary
132 "parallel Loan" does not involve Back to Back Exchange of Involves swaps of Not recorded in D
laon curriencies with currency the books of
a promise to re accounts
exchange at a
time and rate
133 Forward transactions involves Swap rate Reverse Forward rate Spot rate C
exchange of currency at ----- transaction rate
rate.
134 Which of the following is the rate Spread rate Spot rate Forward rate Reverse C
at which banker is willing to buy transaction rate
foreign currency?
135 Which of the following theory best Interest rate Purchasing power Relative inflation Foreign exchange B
defines the relationship between parity theory parity theory theory parity theory
curriencies on the basis of rate
of inflation
136 How does the IMF meet its primary By promoting By overseeing By acting as an By aligning its B
objective? free the balance of arbitrator for the primary
international payments, acting dispute settlement objective with
trade as a forum of of world trade the monetary
world matters objectives of
negotiation and national
regulating world governments
exchange rates
137 Maintaining a foreign currency Avoid Avoid exchange Avoid both Avoid both C
account is helpful to transaction risk. transaction cost transaction cost
cost. and exchange risk and exchange
risk
138 India‟s foreign exchange rate Free float Managed float Fixed . Fixed target of B
system is? band
139 Hedging transaction is indicated Transactions in Presentation of Frequency of such None of the D
by odd amounts documentary transactions. above
support.
140 The acronym SWIFT stands for Safety Width In Society for Society for Swift Worldwide C
Financial Worldwide Worldwide Information for
Transactions. International Interbank Financial
Financial Financial Transaction.
Telecommunicatio Telecommunication.
n.
141 Indirect rate in foreign exchange The rate quoted The rate quoted The rate quoted in None of the A
means with the units with units of terms of a third above
of home currency foreign currency currency.
kept fixed. kept fixed
142 The maxim 'buy low; sell high' is Quotation of Indirect rates. Direct rates. USDOLLARS. C
applicable for Pound-Sterling
143 India is facing continuous deficit Depreciate. Appreciate Show no specific Depreciate A
in its balance of payments. In the tendency against
foreign exchange market rupee is currencies of
expected to the countries
with positive
balance of
payment and
appreciate
against
countries with
negative balance
of payment.
144 The effect of speculation on It causes It aggravates Either or both of Neither A nor B. C
exchange rate is violent the market A and B.
fluctuations in trends.
exchange rate
145 The demand for domestic currency Export of goods Import of goods Export of goods Import of goods C
in the foreign exchange market is and services and services. and services and and services and
indicated by the following capital inflows. capital
transactions in balance of payment outflows.
146 If PPP holds The nominal The real Both real and Both real and B
exchange rate exchange rate nominal exchange nominal exchange
will not change. will not change. rates will not will move
change together
147 The forward US dollar is quoted at Money market Money market Market yield is Dollar has a A
premium against Indian Rupees. rates are higher rates are lower higher in US than better value
This implies in India than in in India than in in India. than Indian
the US. the US. Rupee
148 Determination of forward rates is Uncovered Purchasing power Demand and Supply None of the D
explained by interest parity theory. for spot currency above.
 arbitrage.
149 LIBOR is: the interest the average the maximum loan the maximum D
rate commonly inflation rate rate ceiling on interest rate
charged for in European loans in the offered on bonds
loans between countries. international that are issued
banks money in London
150 A feature of currency option that It carries It is optional The buyer has only The seller has C
distinguishes it from other premium to be to enter into right, but no the right, but
derivatives is paid up front. the contract. obligation to no obligation to
execute the execute the
contract contract.
151 For contingency exposure of Forwards. Futures Options. Swaps. C
foreign exchange, the best
derivative that can be used to
hedge is
152 The price at which a market maker spot rate bid rate ask price forward rate B
is prepared to buy (a currency) or
borrow (money) is termed as
153 A deposit or borrowing domiciled foreign bond euro bond euro currency domestic bond C
outside the home country of the
currency is called as
154 Agreement to exchange one currency Currency swap Swap points Currency put Currency call A
for another at a specified option option
exchange rate and date is
155 IMF augments its resources by General New arrangements Trust funds All the above D
borrowing under arrangements to to borrow
borrow
156 The abbreviations SDR stands for Special Drawing Specific Drawing Special Depository Specific A
Rights Rights Rules Depository Rules
157 The value of SDR is equivalent to based on value average of the based on basket D
one US dollar of gold value of US dollar of five
and Euro currencies
158 A „credit‟ in balance of payments Accumulation of Foreign direct Earning of foreign Earning of D
indicates bank balances investment exchange by the foreign exchange
abroad received into country or incurring of
the country liability abroad
or decrease in
asset abroad
159 In which of the following basic Local and Regional and Internal and Financial and C
categories can business Regional National External. Nonfinancial
environment be divided?
160 Economic environment refers to all political. natural economic social C
forces which have a _____.
161 . ______environment is with in the Internal. External Micro. Macro A
control of the business
162 . ____ environment is beyond the Internal. External Micro. Macro B
control of the business
163 Micro environment is also called general operating economics political B
as ________. environment environment. environment. environment
164 Macro environment is also called general operating economics political A
as _______. environment environment. environment. environment
165 The environment which is close to internal. external micro. macro C
business and affect its capacity
to work is known as
___environment.
166 Factors that create opportunities internal. external micro. macro D
and threats to business units is
known as_______.
167 Internal factors affecting a controllable. uncontrollable relevant. global. A
business environment also are factors.
referred to ____factors.
168 External factors affecting a controllable. uncontrollable relevant. global. B
business environment also be factors.
referred to ___factors.
169 Study of human population is political. social. demographic. economic C
called as _____ environment.
170 Which is the one not included in Language. Internet. Belief Attitude B
national culture?
171 Culture spreads from one place to difference. reputation adoption heritage A
anther and such transmission is
called as ________.
172 A systematic application of technology. culture demograpic legal. A
scientific knowledge to practical
task is known as________.
173 . ___ is defined as systematic Social audit. Social Social Social benefit. A
assessment of the social impact of responsibility. interaction.
the activities of a business firm.
174 What are the elements of business Values rights attitudes value environment Responsibilities A
ethics? and duties. pressure and and attitude. .
environment.
175 Corporate values are the _______ shared values. moral beliefs. customer goodwill B
of the corporate sector satisfaction.
176 The economic system in which capitalism. socialism. democratic. republic. A
business units or factors of
production are privately owned and
governed is called as______.
177 The economic system in which both capitalism. socialism. democratic. republic. B
public and private sectors co-
exist is known as ___economy.
178 Fical policy refers to the policy public debt. budgets. policies. deposits. B
of government regarding taxtation
public expenditure and ____.
179 Fiscal policy is called as ______ monetary. budgetary. industrial. economic. B
policy.
180 One concept of culture determines experience. ethos. education. wealth. B
the ___ of people.
181 India is good example for socialist. mixed . capitalist. communist. B
________economy.
182 ____refers to the system of moral Business Business ethics. Business. Society. B
principles and rules of conduct culture.
applied to business.
183 The following statement with Culture is Culture is Culture is evolved All of the above A
respect to culture is false. determined by changing. among the members
national of a society.
boundaries.
184 Macro environment consist of public. political & suppliers. customers. B
______? legal.
185 The micro environment consists Technological Political Economic Public, D
______. Environment. Environment. Environment. middlemen,
consumers &
competitors.
186 _______ refers to all forces which Technological Political Economic legal. C
have an economic impact. Environment. Environment. Environment.
187 The income level of residents in a gross national gross domestic per capita gross per capita gross C
country is indicated by _______. income. product. national income. domestic
product.
188 In the PEST framework for Ethical Ecological Educational Economic D
environmental analysis what does
the letter E stand for?
189 In macro environment, 'pressure cultural demographic Economic Political D
groups' and 'government agencies' environment environment Environment. Environment.
 are part of

190 Remote environment is an another Micro Macro Internal External B

name of __________ environment environment environment environment
191 _____________is environment covers Technological Demographic Social and Economic D
those factors which give shape and cultural
form to the dept. of economic
activities
192 A stable, honest and efficient Business General Economic Natural A
political system is a primary environment conditions environment
factor for the growth of
193 ___________ is an open form of Parliamentary Government Legal environment Political A
government. System environment environment
194 China is the biggest example Capitalism Mixed economy Laissez Faire Socialism D
_________
195 The term _________ relates to Priority right Intellectual Tariff & Trade Act Madrid agreement B
patent, trademarks, copyrights and property right
trade secrets.
196 __________ is a set of traditional Cultural Social Socio - cultural Economic C
beliefs and values which are environment environment environment
passed and shared among different
societies
197 __________ is the foundation of Language Customs Education Religion A
culture
198 _______ is the process of Coalescing Cooptation Lobbying Procurement C
convincing the various powerful
elements of the environment to act
in the favour of the
organisations.
199 Two or more organisations may Cooptation Lobbying Agreement Coalescing D
merger their organisations to have
better control over the
environment as various resources
are pooled together is __________
200 The organization is said to be Changing Stable Natural Turbulent D
when some sudden and unpredictable environment environment environment environment
changes take place is called
_________
201 In an organisation, changes occur Placid - Placid - rando- Disturbed - Turbulent field A
slowly but threat occurs in clustered mixed reactive environment
cluster is called _________ environment environment environment
202 _________ is an unintended channel Gray market Black market Bribery Counterfeiting A
of distribution that runs parallel
to the planned channel.
203 Culture is _________ Subjective Prescriptive Cumulative All of the above D
204 Under International strategy, Valuable skills prodeucts Core acthitecture Valuable skills D
firms try to create value by and products
transfering ---------- to foreign
markets indigenous competitors
lack these skills and products.
205 Under transnational strategy, Flow of skills Product of Cultural Both (A) & (B) D
firms maintain that ----- should offering differences
ot be all one way from home firm
to foreign subsidiary.
206 Multi domestic firms extensively Creation Different Research & Both (A) & (B) B
customize both their product activities cultural Development
offerings and their marketing differences
strategy to suit -----.
207 "Culture is the collective Maslow Mc Clellands Hofstede None of the C
programming of the mind which above
distinguishes the members of one
human group from another." this is
defined by:
208 Priorities of cultural Values in Family security, Freedom, Beloning, Group Bothe (A) & (B) B
US are: Family harmony, Individualism harmony,
Parental and self- Collectiveness and
guidence and age reliance age/seneority
209 The factors that determine whether Cost of Strategic Product Life cycle All of the above D
a company has invest abroad in Production and rivalary
the form of FDI are: Location