Business Environment and International Business MCQs

Question 1

Match the items of List-I with items in List-II and select a correct answer. List-I List-II a. Current Account 1. Official Capital b. Capital Account 2. Reserves from foreign countries c. Unilateral Payments 3. Reparations d. Official Statement 4. Visible Exports Account and Imports

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 2

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 3

Reserve Bank of India controls the activities of some of the following banks in India (i) Commercial Banks (ii) Cooperative Banks (iii) Foreign Banks (iv) Rural Banks

Accepted Answer

(i), (ii), (iii) and (iv)

Answer

(i), (ii) and (iii)

Answer

(i), (iii) and (iv)

Answer

(ii), (iii) and (iv)

Question 4

Consider the following statements. Assertion (A): Internal factors of business environment are more controllable factors. Reason (R): These factors can be altered or modified in the desired manner to suit the environment.

Accepted Answer

Both (A) and (R) are correct

Answer

(A) is correct, but (R) is incorrect

Answer

Both (A) and (R) are incorrect

Answer

(A) is incorrect

Question 5

Consumers have the right:
(i) to be protected against goods and services that are hazardous to life and property
(ii) to be assured, wherever possible, of access to a variety of goods and services at national price.

Accepted Answer

Both (i) and (ii) are correct

Answer

Both (i) and (ii) are wrong

Answer

Only (i) is correct

Answer

Only (ii) is correct

Question 6

Examine the following statements and choose the correct answer.
Statement-I: FIIs do not invest in unlisted securities. They participate only through Stock Exchanges.
Statement-II: FIIs cannot invest at the time of initial allotment.

Accepted Answer

Both the statements are wrong

Answer

Both the statements are correct

Answer

Statement-I is correct but the statement-II is wrong

Answer

Statement-I is wrong but the statement-Il is correct

Question 7

Globalisation is a process of integration of world economics to realise the benefits of geography, demography, cost and efficiency. Which three characteristics represent globalisation?
1. Increasing space
2. Shrinking space
3. Strengthened borders
4. Shrinking time
5. Disappearing borders
Select the correct answer using the options given below

Accepted Answer

2, 4 and 5

Answer

2, 3 and 4

Answer

1, 2 and 4

Answer

1, 3 and 4

Question 8

Which one of the following items was responsible for most of the increase in international liquidity since World War-II?
(1) Gold
(2) Dollars
(3) Other Convertible Currencies
(4) SDRs
Select the correct answer using the options given below:

Accepted Answer

1, 2 and 4

Answer

1 and 3

Answer

2 and 3

Answer

2 and 4

Question 9

Consider the following statements. Assertion (A): WTO is seeking to create free trade. Reason (R): There is apprehension that a regional trading bloc such as EU can lead to protectionism.

Accepted Answer

Both (A) and (R) are correct and (R) is the right explanation of (A)

Answer

Both (A) and (R) are correct, but (R) is not the right explanation of (A)

Answer

(R) is correct, but (A) is not correct

Answer

Both (A) and (R) are incorrect

List-I	List-II
a. Current Account	1. Official Capital
b. Capital Account	2. Reserves from foreign countries
c. Unilateral Payments	3. Reparations
d. Official Statement	4. Visible Exports Account and Imports