INTERNATIONAL TRADE : PREVIOUS YEAR QUESTIONS :: ECONOMICS

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2011

In the context of global oil prices, “Brent crude oil” is frequently referred to in the news. What does this term imply?

1. It is a major classification of crude oil.

2. Its is sourced from North Sea.

3. It does not contain sulphur.

Which of the statements given above is/are correct?

(a) 2 only

(b) 1 and 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

b

 

A “closed economy” is an economy in which

(a) the money supply is fully controlled

(b) deficit financing takes place

(c) only exports take place

(d) neither exports nor imports take place

d

 

Consider the following actions which the government can take:

1. Devaluing the domestic currency.

2. Reduction in the export subsidy.

3. Adopting suitable policies which attract greater FDI and more funds from FIIs.

Which of the above action/actions can help in reducing the current account deficit?

(a) 1 and 2

(b) 2 and 3

(c) 3  only

(d) 1 and 3

d

 

In terms of economy, the visit by foreign nationals to witness the XIX common Wealth Games in India amounted to

(a) Export

(b) Import

(c) Production

(d) Consumption

a

 

2012

Consider the following statements:  The price of any currency in international market is decided by the-

1. World Bank

2. Demand for good/services provided by the country concerned.

3. Stability of the government of the concerned country.

4. Economic potential of the country in question.

Which of the statements given above are correct?

(a) 1, 2 3, and 4

(b) 2 and 3 only

(c) 3 and 4 only

(d) 1 and 4 only

b

 

2013

Which one of the following groups of items is included in India’s foreign-exchange reserves?

(a) Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries

(b) Foreign-currency assets, gold holdings of the RBI and SDRs

(c) Foreign-currency assets, loans from the World Bank and SDRs

(d) Foreign-currency assets, gold holdings of the RBI, and loans from the World Bank

b

 

 

Which of the following constitute Capital Account?

1. Foreign Loans

2. Foreign Direct Investment

3. Private Remittances

4. Portfolio Investment

Select the correct answer using the codes given below.

(a) 1, 2 and 3

(b) 1, 2 and 4

(c) 2, 3 and 4

(d) 1, 3 and 4

b

 

The balance of payments of a country is a systematic record of

(a) all import and export transactions of a country during a given period of time, normally a year

(b) goods exported from a country during a year

(c) economic transaction between the government of one country to another

(d) capital movements from one country to another

a

 

2014

With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?

1.Balance of trade

2.Foreign assets

3.Balance of Invisibles

4.Special Drawing Rights

Select the correct answer using the code given below :

(a)1 only

(b)2 and 3 only

(c)1 and 3 only

(d)1, 2 and 4 only

c

 

2015

Convertibility of rupee implies:
a) being able to convert rupee notes into gold
b) allowing the value of rupee to be fixed by market forces
c) freely permitting the conversion of rupee to other currencies and vice versa
d) developing an international market for currencies in India
Solution: c)

 

The problem of international liquidity is related to the non-availability of
(a) goods and services
(b) gold and silver
(c) dollars and other hard currencies
(d) exportable surplus
Solution: c)

 

2016

  1. Which of the following best describes the term ‘import cover’, sometimes seen in the news?

(a) It is the ratio of value of imports to the Gross Domestic Product of a country

(b) It is the total value of imports of a country in a year

(c) It is the ratio between the value of exports and that of imports between two countries

(d) It is the number of months of imports that could be paid for by a country’s international reserves

Solution: D

 

  1. ‘European Stability Mechanism’, sometimes seen in the news, is an

(a) agency created by EU to deal with the impact of millions of refugees arriving from Middle East

(b) agency of EU that provides financial assistance to eurozone countries

(c) agency of EU to deal with all the bilateral and multilateral agreements on trade

(d) agency of EU to deal with the conflicts arising among the member countries

Solution: B

 

What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?

  1. To bring the idle gold lying with Indian households into the economy
  2. To promote FDI in the gold and jewellery sector
  3. To reduce India’s dependence on gold imports

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Solution: C

 

2017

Which of the following has/have occurred in India after its liberalization of economic policies in 1991?

  1. Share of agriculture in GDP increased enormously.
  2. Share of India’s exports in world trade increased.
  3. FDI inflows increased.
  4. India’s foreign exchange reserves increased enormously.

Select the correct answer using the codes given below:

(a)1 and 4 only

(b)2, 3 and 4 only

(c)2 and 3 only

(d)1, 2, 3 and 4

ANS:B

 

2018

Consider the following statements:

  1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
  2. The Government does not impose any customs duty on all the imported edible oils as a special case.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:A

 

2019

Consider the following statements:

1. Most of India’s external debt is owed by governmental entities.

2. All of India’s external debt is denominated in US dollars.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:D

 

In the context of India, which of the following factors is/are contributor/ contributors to reducing the risk of a currency crisis?

1.      The foreign currency earnings of India’s IT sector

2.      Increasing the government expenditure

3.      Remittances from Indians abroad

Select the correct answer using the code given below.

(a)1 only

(b)1 and 3 only

(c)2 only

(d)1, 2 and 3

ANS:B

 

Consider the following statements:

1.      Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries.

2.      In terms of PPP dollars, India is the sixth largest economy in the world.

Which of the statement given above is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:A

 

2020

With reference to the international trade of India at present, which of the following statements is/are correct ?

1. India’s merchandise exports are less than its merchandise imports.

2. India’s imports of iron and steel, chemicals, fertilizers and machinery have decreased in recent years.

3. India’s exports of services are more than its imports of services.

4. India suffers from an overall trade/current account deficit.

Which of the statements given above is/are correct ?

(a) 1 and 2 only

(b) 2 and 4 only

(c) 3 only

(d) 1,3 and 4

Answer: D

 

If another global financial crisis happens in the near future , which of the following actions/policies are most likely to give some immunity to India?

  1. Not depending on the short term foreign borrowing.
  2. Opening up to more foreign banks
  3. Maintaining full capital account convertibility

Select the correct answer using the given code below-

(a) 1 only

(b) 1 and 2 only

(c) 3 only

(d) 1, 2 and 3

Answer: A

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