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IDBI-TFF-LU1-Introduction to TF

Total questions: 15

Worksheet time: 6mins

Name
Class
Date
1.

International trade contributes to..............

a)

inflation

b)

trade barrier

c)

Economy

2.

Trade between two or more than two countries is termed as...........

a)

domestic trade

b)

International trade

c)

external trade

3.

The relative strength and elasticity of demand of the two trading

countries for each other’s product in terms Of their own products is known

as............

a)

Reciprocal demand

b)

Comparative advantage

c)

Cost advantage

4.

Domestic trade and international trade differ because of............

a)

Trade restrictions

b)

Immobility of factors

c)

Differ government policies

5.

Which among the following made several rounds of bargaining

through which tariff have been reduced...............

a)

IBRD

b)

IMF

c)

GATT

6.

The situation in which imported goods are more than exported goods?

a)

Trade deficit

b)

Trade barriers

c)

Trade surplus

7.

The trade that happens between countries can indeed be useful if the

price ratios of products are............

a)

Decreasing

b)

Different

c)

Undetermined

8.

The process of selling of the products at a price less than on going

price in the market is known as...........

a)

dumping

b)

quota

c)

tariff

9.

Government policies about export and import is called........

a)

Fiscal policy

b)

commercial policy

c)

Monetary policy

10.

Country A had made total exports of USD 10 Billion and imports of USD 8 billion. Then the country is said to have................. on trade

a)

surplus

b)

deficit

c)

Neutral

11.

International trade is based on the idea that...........

a)

Import should exceed export

b)

Resources are less mobile internationally than are good

c)

Export should exceed import

12.

International trade forces domestic firms to become more competitive

in terms of........

a)

product quality should not be improved

b)

Introduction of new product

c)

keep the price constant without changing

13.

According to comparative advantage theory international trade will not

take place if............

a)

One country is inefficient in production of both goods

b)

One country is efficient in production of both goods

c)

Opportunity cost of two products are same in both countries

14.

A deficit in Balance of payment can be corrected by.....

a)

An increase in interest rate

b)

decrease in interest rate

c)

discouraging capital inflows

15.

Balance of Payment records are maintained by...............

a)

MOF

b)

RBI

c)

GOI