MCQ Questions on International Trade and Finance: Below, You will find a list of Commerce MCQ Questions as per the latest prescribed syllabus. Ace up your preparation with the Objective Questions available on International Trade and Finance and enhance your subject knowledge. Understand the concept clearly by consistently practicing the Multiple Choice Questions and score well in your exams.
MCQ Questions on International Trade and Finance
1. Trade between two countries can be useful if cost ratios of goods are:
(a) Undetermined
(b) Decreasing
(c) Equal
(d) Different
Answer
Answer: (d)
2. The term Euro Currency market refers to
(a) The international foreign exchange market
(b) The market where the borrowing and lending of currencies take place outside the country of issue
(c) The countries which have adopted Euro as their currency
(d) The market in which Euro is exchanged for other currencies
Answer
Answer: (b)
3. Which of the following theories suggests that firms seek to penetrate new markets over time?
(a) Imperfect Market Theory
(b) Product cycle theory
(c) Theory of Comparative Advantage
(d) None of the above
Answer
Answer: (b)
4. Dumping refers to:
(a) Reducing tariffs
(b) Sale of goods abroad at low a price, below their cost and price in home market
(c) Buying goods at low prices abroad and selling at higher prices locally
(d) Expensive goods selling for low prices
Answer
Answer: (b)
5. International trade and domestic trade differ because of:
(a) Different government policies
(b) Immobility of factors
(c) Trade restrictions
(d) All of the above
Answer
Answer: (d)
6. The margin for a currency future should be maintained with the clearing house by
(a) The seller
(b) The buyer
(c) Either the buyer or the seller as per the agreement between them
(d) Both the buyer and the seller
Answer
Answer: (d)
7. The following statement with respect to currency option is wrong
(a) Foreign currency- Rupee option is available in India
(b) An American option can be executed on any day during its currency
(c) Put option gives the buyer the right to sell the foreign currency
(d) Call option will be used by exporters
Answer
Answer: (d)
8. Govt. policy about exports and imports is called:
(a) Commercial policy
(b) Fiscal policy
(c) Monetary policy
(d) Finance policy
Answer
Answer: (a)
9. Which of the following is international trade:
(a) Trade between countries
(b) Trade between regions
(c) Trade between provinces
(d) Both (b) and (c)
Answer
Answer: (a)
10. Market in which currencies buy and sell and their prices settle on is called the
(a) International bond market
(b) International capital market
(c) Foreign exchange market
(d) Eurocurrency market
Answer
Answer: (c)