Business Environment and International Business MCQs

Question 1

Which of the following can be defined as the component/s of Liquidity Adjustment Facility?

Accepted Answer

Both repo and reverse repo rate

Answer

Repo rate

Answer

Reverse repo rate

Answer

Bank rate

Question 2

World Trade Organization is located in Geneva, Switzerland and it has 164 members. WTO was created on 1st January 1995 by:

Accepted Answer

Uruguay Round negotiations

Answer

Tokyo Round negotiations

Answer

Washington consensus

Answer

Doha round negotiations

Question 3

Match the following legislations with the year of their enactment: List-I List-II a. Industries (Development and Regulation) Act 1. 1969 b. Foreign Exchange Management Act 2. 1951 c. Securities Exchange Board Of India Act 3. 1999 d. Monopolies and Restrictive Trade Practices Act 4. 1992

Accepted Answer

a-2, b-3, c-4, d-1

Answer

a-1, b-3, c-4, d-2

Answer

a-1, b-4, c-3, d-2

Answer

a-2, b-3, c-1, d-4

Question 4

Globalisation of financial services is being promoted by

Accepted Answer

International Monetary Fund

Answer

World Trade Organisation

Answer

International Finance Corporation

Answer

International Bank for Reconstruction and Development

Question 5

Assertion (A): Free international trade necessarily lowers the real wage of the scarce factor of production in terms of any good. Reason (R): If the real wage declines in terms of every good, real income must suffer regardless of the tastes and expenditure patterns of the labourer as consumers.

Accepted Answer

Both A and R are true and R is the correct explanation of A

Answer

Both A and Rare true but R is NOT a correct explanation of A

Answer

A is true but R is false

Answer

A is false but R is true

Question 6

Match the following. List-I List-II a. FOB basis 1. Means of international payment b. Official reserves 2. Price paid for insurance and shipment of goods should not be included as part of value of goods either by exporter or importer c. Balance of payment manual 3. Principles or concepts to be followed by countries while compiling BoP data to ensure consistency d. Bill of lading 4. Document of title of sale of goods

Accepted Answer

a-2, b-1, c-3, d-4

Answer

a-1, b-2, c-3, d-4

Answer

a-3, b-2, c-1, d-4

Answer

a-4, b-3, c-2, d-1

Question 7

The quotas of all the member countries with the IMF are valued in terms of

Accepted Answer

SDR

Answer

GDR

Answer

Dollar

Answer

Swaps

Question 8

Which of the following statements are true in context of Consumer Protection Act, 2019

Accepted Answer

All of the above

Answer

The Act proposes the establishment of the Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers

Answer

The Act seeks to be more holistic with stricter rules, including jail term for unfair trade practices like adulteration and misleading ads by firms. The Act is determined to initiate class action, including enforcing recall, refund and return of products

Answer

The consumers can now file complaints at any district or state Consumer Commission closest to them instead of travelling to the location where the service were sold

Question 9

Match the following. List-I List-II a. Foreign trade 1. It is in undertaking by its issue that the bills of exchange drawn by the foreign dealer on the importer will be honoured on presentation upon a specified amount b. Bill of lading 2. It is a document of title to the goods c. Quotation 3. Trade between two or more nations d. Letter of credit 4. It is reply by the seller to the prospective buyer

Accepted Answer

a-3, b-2, c-4, d-1

Answer

a-4, b-1, c-2, d-3

Answer

a-2, b-3, c-4, d-1

Answer

a-4, b-3, c-2, d-1