Question 1 : The export and import of goods between two countries is called
a) international relation
b) international trade
c) international forum
d) all of the above
Answer : b
Question 2 : International trade and domestic trade differ because
a) different government policies
b) immobility of factors
c) trade restrictions
d) all of the above
Answer : d
Question 3 : The process of imports begins from
a) indent
b) ship’s bill
c) ocean policy
d) matter receipt
Answer : d
Question 4 : Which one of the following items has gained the highest growth rate in the import composition of the Indian economy in the last decade?
a) Pearls, precious and semiprecious stones
b) Gold and silver
c) Oil-cake and other solid residues
d) None of the above
Answer : b
Question 5 : Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?
a) Spices
b) Fresh fruits
c) Pulses
d) Vegetable oils
Answer : d
Question 6 : TRIPS agreement pertains to
a) international tariff regime
b) intellectual property protection
c) international practices on trade facilitation
d) international taxation of property
Answer : b
Question 7 : Which one of the following countries has the highest export-import ratio of the international trade of India in the last five years?
a) UAE
b) China
c) United States
d) Japan
Answer : c
Question 8 : Which one of the following countries has the highest share in the World Export among the Asian countries?
a) South Korea
b) Singapore
c) India
d) China
Answer : d
Question 9 : Which one of the following countries has the highest share of composition of exports of agriculture and allied products by major markets in the world?
a) United States
b) EU
c) China
d) India
Answer : c
Question 10 : Which one of the following items has the highest share of India in the World Exports?
a) Coffee, tea, mate, species etc
b) Pearls, precious stones, metals, coins, etc
c) Lac, gums, resins, vegetable saps and extracts etc
d) Vegetable painting materials, vegetable products etc
Answer : b
Question 11 : Which one of the following areas is the main aim of ASIDE Scheme started by Indian Government?
a) to facilitate the import in the country
b) to encourage the export
c) to facilitate the movement of expotriates
d) none of the above
Answer : b
Question 12 : Which one of the following continents accounts for the maximum share of exports from India?
a) Asia
b) Europe
c) Africa
d) North America
Answer : a
Question 13 : Which one of the following export items of India has the highest share in the world in the last five years?
a) diamonds
b) oil-cake and other solid residues
c) ferro-alloys
d) footwear with outer soles of rubber, plastic and leather
Answer : a
Question 14 : Which of the following is not true for South Asian Free Trade Area (SAFTA)?
a) It is a step towards a South Asian customs union and common market
b) the agreement came into effect in 2006
c) the SAFTA is a trade liberalisation
d) the SAFTA agreement takes precedence over any other agreement a member country may have with state outside SAFTA
Answer : d
Question 15 : Which of the following theories form the basis of international trade?
I. Absolute cost difference
II. Comparative cost difference
III. Opportunity cost
a) Only I
b) Only II
c) I and II
d) I, II and III
Answer : d
Question 16 : Which of the following statements about the Trans-Pacific Partnership (TPP) is/are correct?
I. The TPP was signed by 12 Pacific Rim nations in the year 2015
II. The TPP is likely to be a game-changer in global trade as member countries account for about 40% of global GDP
III. India is a founder member of TPP
a) I, II and III
b) I and II
c) II and III
d) Only I
Answer : b
Question 17 : Consider the following statements
I. MFN (Most Favoured Nation) is a status of level of treatment accorded by one state to another in international trade
II. MFN is one of the cornerstones of World Trade Organisation Trade Law
Which of the following statements given above is/are correct?
a) Only I
b) Only II
c) Both I and II
d) Neither I nor II
Answer : c
Question 18 : Consider the following statements about Indian External Sector
I. In the Eleventh Five Year Plan, the share of percentage of the export of primary products is more than the manufactured products
II. The share of the India is half of China in the world export trade
Which of the following statements given above is/are correct?
a) Only I
b) Only II
c) Both I and II
d) Neither I nor II
Answer : d
Question 19 : Consider the following statements
I. India’s participation in foreign trade has continuously improved after 1980
II. As per the current ranking, India is the 3rd largest exporter and 5th largest importer of foreign trade
Which of the following statements given above is/are correct?
a) Only I
b) Only II
c) Both I and II
d) None of the above
Answer : a
Question 20 : With reference to the international trade of India at present, which of the following statements is/are correct?
I. India’s merchandise exports are less than its merchandise imports
II. India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years
II. India’s exports of services are more than its imports of services
IV. India suffers from an overall trade/current account deficit
Which of the following statements given above is/are correct?
a) I and II only
b) II and IV only
c) Only III
d) I, II and IV only
Answer : d
Question 21 : Not available
a)
b)
c)
d)
Answer :
Question 22 : Not available
a)
b)
c)
d)
Answer :
Question 23 : In which of the following years was the trade balance favourable to India?
a) 1970-71 and 1974-75
b) 1972-73 and 1976-77
c) 1972-73 and 1975-76
d) 1971-72 and 1976-77
Answer : b
Question 24 : If a country has exported more than its imports, balance of trade will be
a) negative
b) positive
c) zero
d) indeterminate
Answer : b
Question 25 : Which one of the following is the final session of the General Agreement on Tariff and Trade (GATT)?
a) Singapore Session
b) Geneva Session
c) Washington Session
d) Uruguay Session
Answer : d
Question 26 : BOP (Balance of Payment) refers to
a) transactions in the flow of capital
b) transactions relating to receipts and payment of invisible
c) transactions relating only to exports and imports
d) a systematic record of all its economic transactions with the rest of the world
Answer : d
Question 27 : Which one of the following is not correct in the context of Balance of Payments of India during 2013-14?
a) India’s exports were less than its imports
b) Trade balance was negative
c) Net invisible were positive
d) Capital account balance was negative
Answer : d
Question 28 : Which one of the following factors forms the invisible account of the Balance of Payment of a country?
a) International trade in services
b) Income associated with non-resident assets and liabilities
c) Remittance of workers incomes
d) all of the above
Answer : d
Question 29 : Which of the following does not form a part of current account of Balance of Payments?
a) Export and import of goods
b) Export and import of services
c) Income receipts and payments
d) Capital receipts and payments
Answer : d
Question 30 : Which one of the following factors is taken account to calculated the Balance of Payment (BOP) of a country?
a) Current Account
b) Changes in the Foreign Exchange Reserves
c) Errors and Omissions
d) All of the above
Answer : d
Question 31 : Which one of the following state that holding dollars was more valuable than gold was more valuable than gold because constant US balance of Payments, deficits helped to keep the system liquid and fuel economic growth?
a) Hubbert Curve
b) Triffin’s Dilemma
c) Walras’ Law
d) None of these
Answer : b
Question 32 : The Balance of Payments (BoP) of a country is a systematic record of
a) all import and export transactions of a country during a given period of time, normally a year
b) goods exported from a country during a year
c) economic transaction between the government of one country to another
d) capital movements from one country to another
Answer : a
Question 33 : Which one of the following measures is not likely to aid in improving India’s Balance of Payment position?
a) Promotion of Import Substitution Policy
b) Devaluation of rupee
c) Imposition of higher tariff on imports
d) Levying of higher duties on exports
Answer : d
Question 34 : The Most Favoured Nation (MFN) clause under WTO regime is based on the principle of
a) non-discrimination between nations
b) discrimination between nations
c) differential treatment between locals and foreigners
d) uniform tariff across commodities
Answer : a
Question 35 : Which Ministry of Government of India is related for India’s Foreign Trade Policy?
a) Defence
b) External Affairs
c) Commerce and Industry
d) Home Affairs
Answer : c
Question 36 : Consider the following statements
I. India’s Trade Policy Review (TRP) is carried out of every four years
II. WTO has a mechanism for regular review of the trade policies of member countries
Which of the following statements given above is/are correct?
a) Only I
b) Only II
c) Both I and II
d) Neither I nor II
Answer : c
Question 37 : Consider the following statements about India’s Look East Policy
I. It was articulated during the reign of HD Deve Gowda as India’s Prime Minister
II. It is directed towards South Asian Region
III. It is about controlling terrorism
IV. It seeks to develop a bond among various countries on the basis of economic cooperation
Which of the following statements given above is/are correct?
a) I and II
b) I and IV
c) III and IV
d) II and IV
Answer : d
Question 38 : The exchange rate is
a) the price of one currency relative to gold
b) the value of a currency relative to inflation
c) the change in the value of money over time
d) the price of one currency relative to another
Answer : d
Question 39 : In the foreign exchange market, the ………. one country is traded for the ……… of another country
a) currency, currency
b) currency, financial instruments
c) currency ,goods
d) goods, goods
Answer : a
Question 40 : Exchange rates are determined in the
a) money market
b) foreign exchange market
c) stock market
d) capital market
Answer : b
Question 41 : Which one of the following is the major constituent of the Indian Foreign Exchange Reserve?
a) Gold
b) SDRs
c) Foreign Currency Assets (FCA)
d) Reserve Tranche Position of India in IMF
Answer : c
Question 42 : Devaluation of currency will be more beneficial if prices of
a) domestic goods remain constant
b) exports become cheaper to importers
c) imports remain constant
d) exports rise proportionally
Answer : b
Question 43 : The major aim of devaluation is to
a) encourage exports
b) encourage imports
c) encourage both exports and imports
d) discourage both exports and imports
Answer : a
Question 44 : The problem of international liquidity is related to non-availability of
a) goods and services
b) gold and silver
c) dollars and other hard currencies
d) exportable surplus
Answer : c
Question 45 : Which one of the following groups of items is included in India’s Foreign Exchange Reserves?
a) Foreign-currency assets, Special Drawing Rights (SDRs) and loans form foreign countries
b) Foreign-currency assets, gold holdings of the RBI and SDRs
c) Foreign-currency assets, loans from the World Bank and SDRs
d) Foreign-currency assets, gold holdings of the RBI and loans form the World Bank
Answer : b
Question 46 : Convertibility of rupee implies
a) being able to convert rupee notes into gold
b) allowing the value of rupee to be fixed by market forces
c) freely permitting the conversion of rupee to other currencies and vice-versa
d) developing an international market for currencies in India
Answer : c
Question 47 : Which one of the following is related with the Baltic Dry Index?
a) An assessment of the price of moving the major raw materials by sea
b) An index showing the rising and falling prices of shares and equities in the Baltic region
c) An assessment showing the prices of the crude oil produced in the Baltic region
d) None of the above
Answer : a
Question 48 : Select the incorrect one in the conditions of depreciating rupee from the given list of the situations
a) Exports become competitive in the global market
b) import substitution becomes impossible
c) costlier imports results into higher prices propelling further depreciation
d) both (a) and (b)
Answer : b
Question 49 : Consider the following statements
I. Most of India’s external debt is owed by governmental entities
II. All of India’s external debt is denominated in US dollars
Which of the following statements given above is/are correct?
a) Only I
b) Only II
c) Both I and II
d) Neither I nor II
Answer : c
Question 50 : Consider the following objectives of the Bretton-Woods System
I. To maintain the exchange rate by tying its currency to the US dollar
II. To bridge temporary imbalances of payments
Which of the following statements given above is/are correct?
a) Only I
b) Only II
c) Both I and II
d) Neither I nor II
Answer : c
Explore More MCQs Below
Ancient History
- Historical Sources and Pre-Historic Period
- Indus Valley Civilisation
- The Vedic Era and Mahajanapadas
- Religious Movements of 6th Century BCE
- Mauryan and Post-Mauryan Period
- The Gupta and the Post-Gupta Period
- Early Medieval Period (800-1200 CE)
- Sangam Period
Medieval History
- Arab and Turkish Invasion
- Delhi Sultanate
- Vijaynagara and Bahamani Kingdoms
- Emergence of Provincial Kingdoms (North and South India)
- Religious Movements of 15th and 16th Century CE
- Mughal Empire
- Post-Mughal Period (1707-1857)|
Modern History
- Rise of New States
- Advent of European Companies in India
- British Policies and Its Economic Impact in India
- Peasants, Tribal and Trade Union Movements
- Socio-Religious and Cultural Reforms
- Development of Press and Education System in Modern India
- Revolt of 1857
- Indian National Movement Phase-I (1885-1905)
- Indian National Movement Phase-II (1905-1919)
- Indian National Movement Phase-III (1919-1947)
- Communalism and Leftist Politics
- The British Governor Generals and Viceroys
Geography
World Geography
- Universe and Solar System
- Earth
- Geomorphology
- Climatology
- Oceanography
- Biogeography
- Agriculture Geography
- Minerals and Energy Resources
- Industry and Transport
- Social and Cultural Geography
- Continent and Countries
Indian Geography
- General Introduction of India
- Geological Structure of India
- Physical Division of India
- Drainage System of India
- Climate of India
- Natural Vegetation and Wildlife
- Soils of India
- Agriculture, Irrigation and Animal Husbandry in India
- Minerals and Energy Resources of India
- Industries and Research Centres in India
- Transportation and Communication
- Human Resources
- States and Union Territories of India
Environment and Ecology
- Environment and Ecology
- Pollution
- Climate Change
- Biodiversity
- Environmental Planning and Management
- Sustainable Development and Natural Disaster
Indian Polity
- Constitutional Development
- Framing of Indian Constitution
- The Preamble
- Citizenship and Union and Its Territory
- Fundamental Rights
- Directive Principles of State Policy
- Fundamental Duties
- Union Executive
- The Union Legislature
- Judiciary
- State Administration
- Centre-State Relationship
- Local Self Government
- Electoral System and Party System
- Constitutional and Non-Constitutional Bodies
- Emergency Provisions
- Official Language
- Constitutional Amendment and Special Provision for States
Indian Economy
- Basic Concepts and Structure of Indian Economy
- National Income and Economic Development
- Economic Planning
- Poverty, Unemployment and Related Schemes
- Indian Agriculture
- Indian Industries and Industrial Policy
- Money and Banking
- Financial Market
- Public Finance
- Balance of Payment and Foreign Investments
- International Financial Institutions