Indian Foreign Trade

Indian Foreign Trade MCQs

Indian Foreign Trade MCQs

1. Trade between two or more countries is called:

A) Internal Trade
B) Foreign Trade
C) Retail Trade
D) Wholesale Trade

2. Buying goods from another country is called:

A) Export
B) Entrepot Trade
C) Import
D) Transit Trade

3. Selling goods to another country is called:

A) Export
B) Import
C) Internal Trade
D) Retail Trade

4. Importing goods and re-exporting them is known as:

A) Free Trade
B) Invisible Trade
C) Entrepot Trade
D) Domestic Trade

5. Balance of Trade is calculated as:

A) Export + Import
B) Export − Import
C) Import − Export
D) GDP − Import

6. Balance of Trade includes:

A) Goods only
B) Services only
C) Capital only
D) Loans only

7. Balance of Payments includes:

A) Only exports
B) Only imports
C) All international transactions
D) Only services

8. Exports greater than imports indicate:

A) Trade Deficit
B) Favourable BOT
C) Inflation
D) Devaluation

9. Imports greater than exports indicate:

A) Trade Surplus
B) Favourable BOT
C) Trade Deficit
D) Appreciation

10. Which policy deals with exports and imports?

A) Monetary Policy
B) Fiscal Policy
C) Foreign Trade Policy
D) Population Policy

11. Foreign Trade Policy is also called:

A) Monetary Policy
B) Commercial Policy
C) Banking Policy
D) Revenue Policy

12. Tax imposed on imports is called:

A) Subsidy
B) Tariff
C) Dividend
D) Quota

13. Limit on quantity of imports is called:

A) Tariff
B) Quota
C) Bonus
D) Inflation

14. WTO stands for:

A) World Trade Organization
B) World Transport Office
C) World Tariff Organization
D) World Tax Office

15. Trade in services is called:

A) Visible Trade
B) Internal Trade
C) Invisible Trade
D) Retail Trade

16. Trade in physical goods is called:

A) Invisible Trade
B) Visible Trade
C) Entrepot Trade
D) Domestic Trade

17. Which of the following is an invisible export?

A) Wheat
B) Cotton
C) Tourism Service
D) Rice

18. Currency used in international trade is called:

A) Domestic Currency
B) Foreign Exchange
C) Quota
D) Subsidy

19. Rise in value of domestic currency is called:

A) Depreciation
B) Devaluation
C) Appreciation
D) Inflation

20. Fall in value of currency due to market forces is called:

A) Devaluation
B) Appreciation
C) Depreciation
D) Inflation

21. Official reduction in currency value is called:

A) Devaluation
B) Appreciation
C) Inflation
D) Quota

22. Free trade means:

A) Trade without restrictions
B) Trade without money
C) Internal trade
D) Illegal trade

23. Protecting domestic industries from foreign competition is called:

A) Liberalisation
B) Globalisation
C) Protectionism
D) Privatisation

24. Which organization regulates international trade?

A) RBI
B) IMF
C) WTO
D) SEBI

25. SEZ stands for:

A) Special Export Zone
B) Special Economic Zone
C) State Economic Zone
D) Small Export Zone

26. Which of the following earns foreign exchange?

A) Import
B) Export
C) Quota
D) Tariff

27. Which of the following uses foreign exchange?

A) Export
B) Tourism
C) Import
D) Software Service

28. India mainly imports:

A) Crude Oil
B) Tea
C) Rice
D) Cotton Yarn

29. India is famous for exporting:

A) Petroleum Crude
B) Gold
C) Software Services
D) Coal Only

30. Current account includes:

A) Trade in goods and services
B) Elections
C) Population data
D) Census

31. Consider the following statements:

1. Balance of Trade includes only goods.
2. Balance of Payments includes services also.
3. BOT is broader than BOP.

A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2 and 3

32. Consider the following statements regarding imports:

1. Imports cause outflow of foreign exchange.
2. Imports are purchases from foreign countries.
3. Imports always create favourable trade balance.

A) 1 only
B) 1 and 2 only
C) 2 and 3 only
D) 1, 2 and 3

33. Match the following:

A. Import 1. Sale to foreign country
B. Export 2. Buying from foreign country
C. Entrepot Trade 3. Re-export trade

A) A-2, B-1, C-3
B) A-1, B-2, C-3
C) A-3, B-1, C-2
D) A-2, B-3, C-1

34. Consider the following statements:

1. Free trade means trade without restrictions.
2. Protectionism protects domestic industries.
3. Tariff is a subsidy given on exports.

A) 1 and 3 only
B) 2 only
C) 1 and 2 only
D) 1, 2 and 3

35. Match the following:

A. Tariff 1. Limit on imports
B. Quota 2. Tax on imports
C. Foreign Exchange 3. Foreign currency

A) A-1, B-2, C-3
B) A-2, B-1, C-3
C) A-3, B-2, C-1
D) A-2, B-3, C-1

36. Consider the following statements:

1. WTO regulates international trade.
2. WTO stands for World Trade Organization.
3. WTO is India’s central bank.

A) 1 only
B) 2 only
C) 1 and 2 only
D) 1, 2 and 3

37. Consider the following statements regarding BOT:

1. BOT includes invisible items.
2. BOT is part of BOP.
3. BOT deals only with goods.

A) 2 and 3 only
B) 1 and 2 only
C) 1 and 3 only
D) 1, 2 and 3

38. Match the following:

A. Visible Trade 1. Trade in services
B. Invisible Trade 2. Trade in goods
C. Foreign Trade Policy 3. Policy on exports and imports

A) A-2, B-1, C-3
B) A-1, B-2, C-3
C) A-3, B-2, C-1
D) A-2, B-3, C-1

39. Consider the following statements:

1. Appreciation means rise in currency value.
2. Depreciation means fall in currency value.
3. Devaluation happens automatically in market.

A) 1 only
B) 1 and 2 only
C) 2 and 3 only
D) 1, 2 and 3

40. Match the following:

A. Favourable BOT 1. Imports > Exports
B. Trade Deficit 2. Exports > Imports
C. Trade Surplus 3. Excess of exports

A) A-2, B-1, C-3
B) A-1, B-2, C-3
C) A-3, B-2, C-1
D) A-2, B-3, C-1

41. Consider the following statements:

1. Export promotion aims to increase exports.
2. SEZ provides special economic benefits.
3. Import substitution encourages imports.

A) 1 only
B) 1 and 2 only
C) 2 and 3 only
D) 1, 2 and 3

42. Consider the following statements:

1. Current account includes trade in services.
2. Capital account includes foreign investments.
3. BOT includes capital transfers.

A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2 and 3

43. Match the following:

A. WTO 1. Foreign investment
B. FDI 2. International trade organization
C. SEZ 3. Special economic area

A) A-2, B-1, C-3
B) A-1, B-2, C-3
C) A-3, B-1, C-2
D) A-2, B-3, C-1

44. Consider the following statements:

1. BOT is narrower than BOP.
2. BOP includes invisible items.
3. BOT includes only visible items.

A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2 and 3

45. Consider the following statements:

1. Liberalisation reduces trade restrictions.
2. Globalisation integrates economies.
3. Privatisation means government ownership increases.

A) 1 only
B) 1 and 2 only
C) 2 and 3 only
D) 1, 2 and 3

46. Match the following:

A. Appreciation 1. Fall in currency value
B. Depreciation 2. Rise in currency value
C. Devaluation 3. Official reduction in currency value

A) A-2, B-1, C-3
B) A-1, B-2, C-3
C) A-3, B-1, C-2
D) A-2, B-3, C-1

47. Consider the following statements:

1. India imports gold in large quantities.
2. Petroleum products are major Indian exports.
3. India exports only agricultural goods.

A) 1 only
B) 2 only
C) 1 and 2 only
D) 1, 2 and 3

48. Consider the following statements:

1. Invisible trade includes software services.
2. Tourism is an invisible export.
3. Wheat export is invisible trade.

A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2 and 3

49. Match the following:

A. BOT 1. Record of all transactions
B. BOP 2. Difference between exports and imports
C. Foreign Exchange 3. Foreign currency

A) A-2, B-1, C-3
B) A-1, B-2, C-3
C) A-3, B-1, C-2
D) A-2, B-3, C-1

50. Consider the following statements:

1. Commercial policy is related to foreign trade.
2. BOT includes services.
3. BOP is broader than BOT.

A) 1 only
B) 1 and 3 only
C) 2 and 3 only
D) 1, 2 and 3

Tags

You may like these posts

Previous Post Next Post