Business Environment and International Business MCQs

Question 1

Which of the following statements is/are true in context of dumping?

Accepted Answer

Unemployment reduction

Answer

Capital formulation

Answer

Globalization

Answer

Environmental protection

Question 2

In circular flow of economy, consider the following statements.

Accepted Answer

All of the above are true

Answer

Injections is any spending which is additional to the circular flow that increases the level of income. The examples are business expenditure, government expenditure and exports

Answer

Withdrawal is some income which is not passed on as an expenditure in the circular flow. It decreases the level of income in circular flow. The examples are savings, taxation and imports

Answer

For equilibrium in circular flow, planned injection should be equal to withdrawal

Question 3

Business environment is more descriptive and . . . . . . . .

Accepted Answer

complex

Answer

simple

Answer

large

Answer

None of these

Question 4

Which institution is known as the 'soft loan window' of World Bank?

Accepted Answer

IDA

Answer

IMF

Answer

IFC

Answer

None of these

Question 5

Which country can take the membership of IMF?

Accepted Answer

Any country who follow the rule of IMF

Answer

A developed country

Answer

A developing country

Answer

Under developed countries

Question 6

Out of the following, which are the important objectives of IMF? (i) To promote exchange rate stability (ii) To create standby reserves (iii) To print International currency notes (iv) To establish a multilateral system of payments (v) To maintain orderly exchange rate stability (vi) To create employment

Accepted Answer

(i), (ii), (iv), (v)

Answer

(ii), (iv), (v), (vi)

Answer

(iii), (v), (vi)

Answer

(i), (ii), (v), (vi)

Question 7

From the following, identify the trading blocks in the world and choose the correct answer: (1) European Union (2) North American Free Trade Agreements (3) South Asian Association of Regional Cooperation (4) Central American Common Market (5) Central African Customs Union

Accepted Answer

1, 2, 3, 4 and 5

Answer

1, 2 and 3

Answer

1, 2, 3 and 4

Answer

1, 2 and 5

Question 8

Balance of Payments can be made favourable if:

Accepted Answer

both A and C

Answer

exports are increased

Answer

imports are increased

Answer

devaluation of money

Question 9

Any member can be debarred from membership of World Bank if

Accepted Answer

All of the above

Answer

it gives written notice to the bank

Answer

it work against the guidelines of bank

Answer

it quits membership of IMF