1 .Free Trade refers to

(a) free movement of goods from one country to another

(b) movement of goods free of cost

(c) unrestricted exchange of goods and service

(d) trade free of duty

Show Answer

2. Purchasing Power Parity theory is related with

(a) Interest rate

(b) Bank rate

(c) Wage rate

(d) Exchange rate

Show Answer

3. Excise duty on a commodity is payable with reference to its

(a) production

(b) production and sale

(c) production and transportation

(d) production, transportation and sale

Show Answer

4. All of the goods which are scarce and limited in supply are called

(a) Luxury goods

(b) Expensive goods

(c) Capital goods

(d) Economic goods

Show Answer

5. Foreign currency which has a tendency of quick migration is called

(a) Scarce currency

(b) Soft currency

(c) Gold currency

(d) Hot currency

Show Answer

6. What does ECS in banking transactions stand for?

(a) Excess Credit Supervisor

(b) Extra Cash Status

(c) Exchange Clearing Standard

(d) Electronic Clearing Service

Show Answer

7. The practice of selling goods in a foreign country at a price below their domestic selling price is called

(a) 'diplomacy'

(b) 'discrimination'

(c) ‘dumping’

(d) ‘double pricing

Show Answer

8. New capital issue is placed in

(a) Secondary market

(b) Grey market

(c) Primary market

(d) Black market

Show Answer

9. if the price of tea fails, demand for coffee will

(a) increase

(b) decrease

(c) remain same

(d) None of these

Show Answer

10 Seawater, fresh air, etc., are regarded in Economics as

(a) Giffen goods

(b) inferior goods

(c) free goods

(d) normal goods

Show Answer