TYBA (EM) International Economics-II (S-3)

19ArEcoU613, Sem-VI, CIE Backlog 2023-2024

Date: 04/04/2024 Time: 1:15 pm To 2:00 pm

19ArEcoU613
All questions are compulsory.

STUDENT NAME-
ROLL NUMBER- SUPERVISOR SIGNATURE-

1. The principal imports of India may be classified into which of the following groups?
a) All of these b) Capital goods c) Food products d) Raw materials and intermediate
products

2. …. Is the system where the government decides the exchange rate.

a) Fixed b) Floating c) None of these d) Managed

3. The mechanism of import licensing has been evolved as a system to administer __________
regulations
a) Tariff b) Dumping c) Quota d) none of these

4. Headquarter of SAARC located at?

a) New Delhi b) Dhaka c) Kathmandu d) Islamabad

5. A fixed quantity of a commodity that has been allowed to be imported in the country
during a given time period is known as ___________.
a) Tariff b) Quota c) Exchange rate d) Import substitution

6. WTO was established on

a) 5th December,1998 b) 6th February,1997 c) 1st January,1995 d) 2nd
November,1996

7. BRICS Headquarter?
a) Delhi b) Shanghai c) Capetown d) Moscow

8. The exchange rates can be classified into which among the following?
a) Flexible exchange rate c) Fixed exchange rate
b) All of these d) None of these

9. How many members are present in the WTO?

a) 207 b) 160 c) 195 d) 164

10. Which among these is/are the main causes of fluctuations in exchange rates?
a) Banking operations c) Capital movement
b) Trade movement d) All of these
11. __________ are perfectly free to fluctuate according to the changes in the demand for and
supply of foreign exchange.
a) Floating exchange rates c) Flexible exchange rates
b) Free exchange rates d) All of these

12. ____________ refers to the policy of encouraging home industries by giving subsidies to
domestic producers.
a) Free trade b) Tariff c) Quota d) Protection

13. A trade policy of placing no restrictions on the movement of goods between countries is
known as
a) Restricted trade b) Free trade c) Foreign trade d) Domestic trade

14. The role of foreign trade can be judged by which of the following faces
a) Market expansion c) Decrease in unemployment
b) Foreign exchange earning d) All of these

15. Which of the following among these are not the types of quotas?
a) Unilateral quota b) Customs quota c) Protective tariffs d) Bilateral quota

16. A tax or duty to be paid on a particular class of imports or exports is known as...
a) Subsidies b) Imported Tax c) Tariff d) Import Quotas

17. SAARC is union of ………. countries

a) 05 b) 12 c) 10 d) 08

18. According to the infant-industry argument for a tariff........

a) Tariffs on baby clothes save children’s lives.
b) A tariff can protect a new industry while it gains experience and reduces costs.
c) A small tariff must be beneficial for a small country.
d) A small tariff must be beneficial for a large country.

19. Headquarter of WTO located at ………

a) Washington b) Geneva c) Kathmandu d) New York

20. FEMA was enacted on ……. year.

a) 2008 b) 2012 c) 2000 d) 2004

21. Which of the following is/ are the objectives of quotas?

a. To regulate imports in an effective manner.
b. To maintain and stabilize domestic price levels by restricting
the import
c. To protect domestic industries from severe foreign
competition.
d. All of these

22. Tariffs are classified into

a) Ad Valorem duties b) Specific duties c) Both of these d) None of these

23. WTO's before named?

 a) GAAT b) ILO c) UNESCO d) WHO

24. Foreign Exchange Rate refers to a relative ………. of one currency expressed in terms of
another currency.
a) Volume b) Numbers c) Price d) System

25. FTA stands for

a) Free Trade Arrangements c) Free Technology Arrangements
b) Free Trade Agreement d) Free Trade Argument

26. MEIS stands for

a) Merchandise exports from India Scheme c) Mechanical expertise for Indian Scheme
b) Mechanical exports from India Scheme d) Merchant exports for Indian Scheme

27. Which among these are the advantages claimed for flexible exchange rates?
a) It permits the existence of free trade and convertible currencies
b) The system of flexible exchange rates is a simple one.
c) Both of these
d) None of these

28. Composition of foreign trade includes ___________

a) Export and Import c) Saving and investment
b) Consumption and expenditure d) None of these

29. OECD stands for______________

a) Organisation for Economic Community and Development.
b) Organisation for Economic Contribution and Development.
c) Organisation for Economic Communication and Development.
d) Organisation for Economic Co-operation and Development.

30. _________________are levied as a fixed percentage of the value of the imported commodity.
a) Specific duties c) Sliding scale duties.
b) Ad valorem duties d) None of these

31. ……is the system where the demand-supply cycle decides the exchange rate
a) Fixed b) Floating c) Managed d) None of these

32. Foreign trade is important for an economy because it helps in

a) Dissolving monopolistic entities c) Expansion of business
b) Increasing competition d) All of these

33. ____________deals with the global rules of trade between nations.

a) WTO b) SAARC c) IMF d) EEC

34. ________________are those whose primary purpose is to provide revenue to the state.
a) Protective tariffs b) Traditional tariff c) Revenue tariffs d) None of these

35. International trade _______

a) Diversifies consumption b) Stimulates innovations c) Both of these d) None of these

36. Fixed exchange rate is also known as

 a) Pegged exchange rate b) Par value c) Stable exchange rate d) All of these

37. IBRD (International Bank for Reconstruction and Development) also known as
a) Exim Bank b) International Monetary fund c) International Bank d) World Bank

38. ____ means selling the products at a less price than on going price in the market.
a) Tariff b) Subsidy c) Dumping d) Quota

39. __________means a study of the countries to whom the exports are made and from whom the
imports are made.
a) Balance of payment b) Foreign exchange c) Structure of trade d) Direction of trade

40. The price of a country's currency in relation to another country's currency is known as
a) Exchange rate b) Balance of payment c) Balance of trade d) Bank rate