The BoP is a fund statement that reflects changes in assets, liabilities and net worth during a . . . . . . . . period.
A. given
B. specified
C. financial
D. None of these
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A country leaving the membership of IMF can continue its membership with World Bank, if . . . . . . . . members of bank give their votes in its favour.
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FEMA is implemented for
A. to facilitate external trade and payment
B. to emphasises on transparency
C. Both A and B
D. None of the above
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Which of the following deficits are true in their representation?
(1) Budget deficit = Total expenditure - Total receipts
(2) Revenue deficit = Revenue expenditure - Revenue receipts
(3) Fiscal deficit = Total expenditure - Total receipts except borrowings
(4) Primary deficit = Fiscal deficit - Interest payments
A. 1, 3 and 4
B. 1, 2 and 4
C. 2, 3 and 4
D. 1, 2, 3 and 4
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Which of the following is an example of an issue for which an agreement has not been made between two or more countries?
A. Restricting harmful emissions
B. Deep-sea mining in non-coastal areas of the oceans
C. Preserving endangered species
D. Banning the use of certain pesticides
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Which among the following is an essential characteristic of mixed economy?
A. Co-existence of small scale and large scale industries
B. Co-existence of private and public sectors
C. Assigning equal importance to both agriculture and heavy industries
D. Co-existence of the rich and the poor
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IMF has raised the quota and voting share of India, which places India at the . . . . . . . . place among 184 members of the organisation.
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Match the following.
List-I (Theories of International Trade)
List-II (Features)
a. Theory of reciprocal demand
1. Through specialisation, countries could increase their efficiency.
b. Theory of absolute advantage
2. It emphasises the demand side as well.
c. Theory of mercantilism
3. It assume that there is only one factor of production.
d. Theory of comparative cost
4. Countries should export more than they import.
A. a-4, b-3, c-2, d-1
B. a-2, b-1, c-4, d-3
C. a-3, b-4, c-1, d-2
D. a-2, b-3, c-4, d-1
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Consider the following statement and identify the right ones.
1. India adopted LERMS in 1992.
2. In 1993, dual exchange rate system was replaced by a unified floating exchange rate.
A. Only 1
B. Only 3
C. Both of the above
D. None of the above
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Consider the following statements.
Assertion (A): The formal banking system was started after the entry of Britishers into India
Reason (R): There was a loophole in the informal banking which was practiced in India
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
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The theory of reciprocal demand is developed by . . . . . . . .
A. Veron
B. John Stuart Mill
C. Ohlin
D. None of these
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What are the objectives of international trade?
A. Sales expansion
B. Diversification
C. Maximise competitive risk
D. Both A and B
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Favourable investment on private investment in called
A. effect of fiscal policy
B. limits of fiscal policy
C. effect on Public credit policy
D. None of the above
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Globalisation is beneficial for firms because
A. it opens up new market opportunities
B. it protects them against foreign competition
C. it cushions them from the effects of events in other countries
D. it increases the risk and uncertainty of operating in a globalising world economy
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The main advantage of a system of flexible (floating) exchange rates is that it:
A. provides certainty for international traders.
B. provides automatic correction of balance of payments deficits
C. reduces international transactions costs
D. provides policy discipline for governments
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Which of the following is not included in features of business environment?
A. Business environment includes both types internal and external
B. It is not in control of a businessman
C. Business environment is movable/continuous
D. Activities of business environment are complex in nature
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Which of the following is not a characteristic of bartering internationally?
A. Bartering can be time consuming
B. Bartering can be expensive
C. Bartering is a type of service export and import
D. Bartering can be risky
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Which of the following can not be advantage of licensing?
A. It has low financial risks
B. It avoid tariffs
C. It has possibility of creating future competitor
D. None of the above
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SAARC helps to strength then cooperation with other
A. developed countries
B. developing countries
C. underdeveloped countries
D. None of these
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Which among the following are multinational corporations?
(1) A multinational, decentralized corporation with strong home country presence.
(2) A global, centralized corporation that acquires cost advantage through centralized production when cheaper resources are available.
(3) An international company that builds on the parent corporations technology and research and development.
(4) A transnational enterprise that combines the (1), (2) and (3).
A. 1 and 3
B. 2 and 3
C. 1, 2 and 3
D. 1, 2, 3 and 4
Select an option to see the answer and solution.