This quiz works best with JavaScript enabled. Home > Indian Economy > Global > Industries Infrastructure And Foreign Trade – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Industries Infrastructure And Foreign Trade Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A country is said to be in a debt trap if: [IAS 2002] A) It has to abide by the conditionalities imposed by the International Monetary Fund. B) It has to borrow to make interest payments on outstanding loans. C) It has been refused loans or aid by creditors abroad. D) The World Bank charges a very high rate of interest on outstanding as well as new loans. Show Answer Correct Answer: B) It has to borrow to make interest payments on outstanding loans. 2. GATT's first round held in A) Tokyo. B) Uruguay. C) Torquay. D) Geneva. Show Answer Correct Answer: D) Geneva. 3. ..... occurs when a firm invests resources in business activities outside its homecountry. A) Diversification. B) FDI. C) Cross nationalcommerce. D) None of theabove. Show Answer Correct Answer: B) FDI. 4. After textiles, India's second important industry is : A) Sugar. B) Jute. C) Cement. D) Iron and steel. Show Answer Correct Answer: D) Iron and steel. 5. In which of the following industries is the maximum number of women employed in India? [CDS 1993] A) Textile. B) Jute. C) Tea. D) Coal. Show Answer Correct Answer: C) Tea. 6. One reason direct investment may be prefered to portfolio is A) It fills the savings investment gap. B) It doesn't pose a threat to national sovereignty. C) It doesn't create an outflow on primary income. D) It is more long term and stable. Show Answer Correct Answer: D) It is more long term and stable. 7. Foreign Investment Policy announced in A) June 1991. B) July 1991. C) July-August-1991. D) August 1991. Show Answer Correct Answer: C) July-August-1991. 8. An action a government uses to control trade between countries A) Trade barrier. B) Voluntary trade. C) Free trade. D) None of the above. Show Answer Correct Answer: A) Trade barrier. 9. India is facing continuous deficit in BOP. In the foreign exchange market, rupee is expected to A) Depreciate. B) Appreciate. C) No specific tendency. D) All of the above. Show Answer Correct Answer: A) Depreciate. 10. Which trade centre in ancient India was the major place for export of stones? A) Broach. B) Indraprastha. C) Taxila. D) Peshawar. E) Patliputra. Show Answer Correct Answer: E) Patliputra. 11. India's foreign exchange system is A) Free float. B) Fixed. C) Managed float. D) None. Show Answer Correct Answer: C) Managed float. 12. When did Portuguese colonise India? A) 1600 BC. B) 1602 BC. C) 1498 BC. D) 1616 BC. Show Answer Correct Answer: C) 1498 BC. 13. Which were important trading community from south in ancient india A) Bhats. B) Chattiars. C) Ayangars. D) Mahajans. Show Answer Correct Answer: B) Chattiars. 14. GATT A) 1986. B) 1947. C) Infosys. D) Minimise cost of production. Show Answer Correct Answer: B) 1947. 15. The institution of ..... also played an important role during Mughal period and days of east India company, as intermediaries. A) Nagar Seths. B) Commercial and Industrial Banks. C) Commission Agents. D) Jagat Seths. Show Answer Correct Answer: D) Jagat Seths. 16. Which of the following measures is not likely to help in improving India's balance of payments position? A) Devaluation of the rupee. B) Encouragement of import substitution. C) Imposition of higher duty on imports. D) Imposition of higher duty on exports. Show Answer Correct Answer: D) Imposition of higher duty on exports. 17. Arbitrage implies: A) Practice of taking advantage of rice difference in two markets. B) The practice of under invoicing exports. C) The practice of dumping viz., selling goods in a foreign market cheaper than the home market. D) The practice of over-invoicing imports. Show Answer Correct Answer: A) Practice of taking advantage of rice difference in two markets. 18. Mashelkar Committee was constituted to report on : A) Economic policy. B) Constitutional changes. C) Black money. D) Auto fuel policy. Show Answer Correct Answer: D) Auto fuel policy. 19. Import substitution implies [Asstt Commdt 2011] A) Importing new items in place of old items of import. B) Gradual reduction of imported goods to save foreign exchange. C) Increasing domestic supply of goods by imposing import restrictions. D) Replacing import items by domestic production of such items. Show Answer Correct Answer: D) Replacing import items by domestic production of such items. 20. Drain of wealth means ..... ? A) Inflow of domestic wealth to other countries for their wealth. B) Outflow of domestic wealth to other countries for their wealth. Show Answer Correct Answer: B) Outflow of domestic wealth to other countries for their wealth. ← PreviousNext →Related QuizzesIndian Economy QuizzesIndustries Infrastructure And Foreign Trade Quiz 1Industries Infrastructure And Foreign Trade Quiz 2Industries Infrastructure And Foreign Trade Quiz 4Industries Infrastructure And Foreign Trade Quiz 5Industries Infrastructure And Foreign Trade Quiz 6Industries Infrastructure And Foreign Trade Quiz 7Globalisation And The Indian Economy QuizIndia S Foreign Policy QuizInternational Organisations And Human Development Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books