Fundamentals of Commerce -Unit-1

1. 1. Commerce primarily involves the exchange of goods and services for money.

• A. TRUE

• B. FALSE

2. 2. Commerce only benefits businesses and has no direct impact on society.

• A. TRUE

• B. FALSE

Answer explanation

Commerce has a substantial impact on societal development by generating employment, improving living standards, and providing access to a variety of goods and services.

3. Balance of Payments is a measure of a country's total economic transactions with the rest of the world.

• A. True.

• B. False

4.WTO agreements allow member countries to impose trade barriers without restrictions.

• A. False

• B. True.

Answer explanation

WTO agreements aim to reduce trade barriers and promote free and fair trade among member countries.

5. 5.A trade surplus occurs when a country exports more goods and services than it imports.

• A. True

• B. False

6. 6.What is Commerce?

• A) The study of history

• B) The exchange of goods and services

• C) The art of communication

• D) The process of farming

7. How does Commerce contribute to Economic Development?

• A) By promoting self-sufficiency

• B) By reducing international trade

• C) By creating jobs and increasing income

• D) By limiting consumer choices

8. What is Exports?

• A) Goods and services purchased from other countries

• B) Goods and services sold to other countries

• C) Domestic production for local consumption

• D) A type of taxation on international trade

9.What is the Balance of Payments?

• A) A financial statement for a household

• B) A record of all financial transactions between a country and the rest of the world

• C) A list of personal expenses and income

• D) A measure of a country's population growth

10.Which organization deals with global trade rules and agreements?

• A) United Nations

• B) World Bank

• C) International Monetary Fund (IMF)

• D) World Trade Organization (WTO)