Mumbai University IDOL   

M.Com Part 1 Economics MCQ 

1. international monetary funds has
succeeded in resolving the issue of _ by establishing special drawing rights
A.   International
debt
B.   international
liquidity
C.   internal
problems
D.   internal
trade
ANS: B
 
2. Keynes multiplier depends upon.
A.   IANS:
s
B.   k=f
(mps)
C.   cANS:
s
D.   mANS:
p
ANS: B
 
3. poverty is workers economic inequality
lack of employment opportunities are all considered as _ effect of migration
A.   push
factors
B.   pull
factors
C.   economic
factors
D.   geographical
factors
ANS: C
 
4. ___ refers to the removal of trade
restrictions and incentives from trade between nations
A.   trade
liberalisation
B.   trade
competition.
C.   trade
restriction
D.   trade
association
ANS: A
 
5. classical economists like Adam smith and
David Ricardo were in favors of
A.   open
trade
B.   free
trade
C.   restricted
trade
D.   closed
trade
ANS: B
 
6. In meads model a country has to follow. _
in the exchange rate so as to combat surplus in the balance of payment
A.   appreciation
B.   depreciation
C.   devaluation
D.   Revaluation
ANS: A
 
7. Headquarters of impf is in
A.   Manila
B.   Cairo
C.   Berlin
D.   Washington
ANS: D
 
8. The foreign trade multiplier is a
function of
A.   MPS-
MPM
B.   MPS ANS:
 MPM
C.   MPS/MPM
D.   MPS*
MPM
ANS: B
 
9. helps to save scarce and precious foreign
exchange
A.   unilateral
quota
B.   import
licensing
C.   mixing
quota
D.   bilateral
quota
ANS: A
 
10. The statutory basis for administration of
foreign exchange in India is
A.   foreign
exchange regulation act 1930
B.   foreign
exchange management act 1999
C.   foreign
exchange regulation act 1947
D.   exchange
control manual
ANS: A
 
 
11.which of d follow kind of investment is
not a part of short term capital flow with regards to foreign capital
A.   Foreign
bill of exchange
B.   Demand
deposit
C.   Portfolio
investment
D.   Overdraft
ANS: B
 
12. in international trade the monopoly
tendency appears in ……..form
A.   industry
B.   only
dumping
C.   only
cartel
D.   dumping
and cartel
ANS: D
 
13.foreign direct investment gives the
economy
A.   productive
B.   Short
term stability
C.   Long
term stability.
D.   efficient
ANS: C
 
14. Virtual organize are ….. on nature
A.   permanent
B.   temporary
C.   long
term
D.   perpetual
ANS: B
 
15. In a broader sense in tariff we include
A.   Only
import duty
B.   Only
export duty
C.   import
duty, export duty and transit duty
D.   Import
duty and transit duty
ANS: C
 
16. Import quotas are adopted to _ the
domestic goods price level.
A.   Increase
B.   Reduce
C.   Stabilize
D.   ignore
ANS: C
 
17. ……. is one of the strategies for
attracting and promoting foreign direct investment (FDI)
A.   supply
chain
B.   internal
trade
C.   mergers
and acquisition d
D.   logistics
ANS: A
 
18. __ is internationally known as the
central bank of member countries.
A.   Asian
Development Bank
B.   International
Monetary Fund
C.   World
Bank
D.   United
Nations Organization
ANS: A
 
19. the — fiscal policy combined with easy
credit policy will place ample resources at the disposal of the government to
finance public expenditure project and it will include the private investment
which will add more quickly the output without borrowing
A.   Natural.
B.   tight
C.   easy
D.   None
of these
ANS: B
 
20. — s the function of the foreign
exchange market to enter in to forward contract to sell the foreign exchange at
a predetermined rate
A.   Transfer
function
B.   Credit
function
C.   hedging
function
D.   none
of these
ANS: C
 
21. from which bank ASEAN receive financial
assistance
A.   world
bank
B.   Asia
development bank
C.   National
development bank
D.   bank
of Japan
ANS: B
 
22. …….. is a reason of outsourcing of
activities by an organization
A.   clear
outstanding dues
B.   focus
on core activities
C.   provide
training to employees
D.   create
chaos
ANS: B
 
23. in meads model simultaneous achievement
of internal and external balance of economy the external balance curve positively
sloped indicating that as exchange rate — domestic absorption must rise Ans
vise vera.
A.   appreciate
B.   depreciates
C.   Devaluates
D.   Revaluates
ANS: B
 
24. after the second world war many countries
have used the — method to improve the balance of payments
A.   import
quota.
B.   tariff
C.   dumping
D.   devaluation
ANS: B
 
25. ___ retain the foreign bill of exchange
till maturity and recover the full value of the foreign bill of exchange.
A.   Discount
Houses
B.   Acceptable
Houses
C.   Central
Bank
D.   Commercial
Banks

ANS: A