LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer Question Objectives of the IMF Correct Answer Stability in the BOP , Stability in internal price level , Stability in the exchange rate Your Answer Stability in the exchange rate , Stability in the BOP , Stability in internal price level True/False Question If production takes place at the optimum level price will be not be equal to the minimum average cost of production Correct Answer False Your Answer False True/False Question In case of exports, agriculture has surpassed gems & jewellery in terms of a higher rate of increase, though lesser in absolute figure. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Why is it so common to give protection to infant industry? Correct Answer Because the new firms are weak and vulnerable , Unless the conditions are conducive , expansion in output cannot be assured , To discourage the imports Your Answer Because the new firms are weak and vulnerable , Unless the conditions are conducive , expansion in output cannot be assured , To discourage the imports

Select The Blank Question Current account balance is important in determining nation's________ Correct Answer External Investment position Your Answer Internal Investment position True/False Question The reigns of policy formulation & operations of the World Bank are in the hands of the Board of Directors. Correct Answer False Your Answer False True/False Question IMF or World Bank want trading counties to follow a uniform code of classification to emphasis their importance on the world economy. Correct Answer False Your Answer False Select The Blank Question Under perfect competition same price for ________ will prevail in the product market and price of factors of production also will be same for same varieties Correct Answer Identical commodities Your Answer Identical commodities Select The Blank Question ________ hypothesis advocates globalisation, that it accelerates the country's growth process Correct Answer Convergence Your Answer

Bhagwati Multiple Choice Single Answer Question In case of tangency between price ration & production possibility cure - post Globalisation - is achieved at a parallel but lower level, then it shows that Correct Answer Production capabilities of both the goods have declined Your Answer The commodity prices have declined Multiple Choice Single Answer Question Apart from the gold or foreign curreny, the quota that each country had to pay was based on .. Correct Answer Size of GDP Your Answer Size of GDP Multiple Choice Multiple Answer Question Balance of payment includes Correct Answer Current Account , Capital Account , Reserve Movements Your Answer Current Account , Capital Account , Reserve Movements True/False Question Production equilibrium is realised at the point of tangency between the production possibility curve and factor price ratio. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer REGULATOR FOR INSURANCE SECTOR EFFECTIVE WATCH DOG EFFECTIVE WATCH DOG

HOLDING COMPANY &FOUR SUBSIDIARIES. GIC & New india,united,oriental,national GIC & New india,united,oriental,national THE POTENTIAL &SCOPE WHICH IS STILL UNDER TAPPED PERSONAL LINE OF INSURANCE & HEALTH CARE AREA. PERSONAL LINE OF INSURANCE & HEALTH CARE AREA. RECENT DEVELOPMENT BY GOVT OF INDIA SET UP AN AGRICULTURE INSURANCE COMPANY OF INDIA. SET UP AN AGRICULTURE INSURANCE COMPANY OF INDIA. Multiple Choice Multiple Answer Question Why is it that factor price equalization is not found frequently in countries? Correct Answer Presence of factor cost Your Answer Presence of factor cost , There is no perfect competition in the market , In absence of commodity price equalization factors cannot move towards equality True/False Question The inception of WTO dates back to 1995 Correct Answer True Your Answer True True/False Question In multiversion scheme to ensure serailizibility it is necessary that a transaction should be able to determine easily and quickly which version of the data item should be read. Correct Answer True Your Answer True Multiple Choice Single Answer Question What was the main reason for rise in price during 1970's? Correct Answer rise in petroleum prices Your Answer

rise in petroleum prices Multiple Choice Single Answer Question Globalisation started taking root in the world economy since the Correct Answer Eighties Your Answer Seventies Multiple Choice Single Answer Question When a particular transaction never makes progress because the data item it wants to lock is already locked and other transaction are also waiting for the same data item then it is said to be Correct Answer Starvation Your Answer Alive Lock True/False Question Wait-die scheme is based on preemptive technique. Correct Answer False Your Answer True Multiple Choice Single Answer Question According to the Absolute advantage theory why will there be any kind of difference in cost of the same product in two countries? Correct Answer Due to productivity Your Answer Lack of technology Multiple Choice Multiple Answer Question What are the problems being faced by the developing countries due to reduced trade barriers? Correct Answer entering of giants in the market , stiff competition to the local trades Your Answer

entering of giants in the market , stiff competition to the local trades , Demand sensitivity of the product True/False Question Developed countries come closer through trade because consumption patterns are know to each other Correct Answer True Your Answer True Multiple Choice Single Answer Question What is reason behind many Latin American and African countries forming a union? Correct Answer These countries have put a common front against the imperial power Your Answer These countries have put a common front against the imperial power True/False Question Wound wait and wait die schemes avoids starvation. Correct Answer True Your Answer True Multiple Choice Single Answer Question A transaction may release locks, but may not obtain any new locks this phase is called as Correct Answer Shrinking Phase Your Answer Growing phase Match The Following Question Correct Answer Your Answer Real protection An industry takes into account the higher prices a producer has to pay on

imported inputs owing to imposition of tariffs The proportion of total costs accounted for by imported inputs Tariff barriers Specific tariff Specific tariff Non Tariff barrier Quotas Quotas Effective protection The proportion of total costs accounted for by imported inputs An industry takes into account the higher prices a producer has to pay on imported inputs owing to imposition of tariffs Multiple Choice Multiple Answer Question Invisible Trade comprises Correct Answer Travel & Transport , Insurance , Interest Payments Your Answer Travel & Transport , Insurance , Transfer Payments & Gifts Multiple Choice Multiple Answer Question Identify the assumptions of H-O theory? Correct Answer Technology in both the country are same , Production function of a commodity is same Your Answer Technology in both the country are same , Efficiency in production , Production function of a commodity is same Select The Blank Question Apart from international reserves, ________ also widens the monetary base of the central bank. Correct Answer Net domestic assets Your Answer Net domestic assets True/False Question In case of multiple peg, the domestic currency changes propotionately to any change in exchange rates of nations of the basket

Correct Answer False Your Answer True Multiple Choice Single Answer Question The institutional aspect of reforms refer to Correct Answer It's proper & effective implementation Your Answer Working beyong bureacratic compliance Multiple Choice Multiple Answer Question Why is tariff imposed? Correct Answer Because it is the major source of revenue , To attain self-sufficiency in the country , To give protection to the domestic countries Your Answer Because it is the major source of revenue , To attain self-sufficiency in the country , To give protection to the domestic countries Multiple Choice Multiple Answer Question What are the main highlights of Product life cycle? Correct Answer These are normally labor scarce countries , Producers use more labor , Money is spent in research and development to innovate using capital intensive technique Your Answer These are normally labor scarce countries , Producers use more labor , Money is spent in research and development to innovate using capital intensive technique

capital than new ways of capital than new ways of

Multiple Choice Single Answer Question Day to day functioning & policy implementation of the IMF are the responsibilities of the Correct Answer Executive Directors Your Answer Executive Directors

Multiple Choice Single Answer Question The rate of increase in the India's trade deficit as seen is highest in the year Correct Answer 1998-99 Your Answer 1998-99 Multiple Choice Single Answer Question Does a big population mean a big labor force? Correct Answer It is always compared in relation to the other factors Your Answer It is always in comparison with capital Select The Blank Question Due to Export Subsidy selling price abroad ________ the home market price Correct Answer Will be less than Your Answer Will be less than True/False Question The AMS completely believed & worked on lines of poverty eradication & rural upliftment. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question How dose a country determine the imports and exports items of a particular country? Correct Answer By comparing hourly output per labor , The country with least average cost would be ideal Your Answer By comparing the labor capital ratio , By comparing hourly output per labor , The country with least average cost would be ideal

True/False Question According to SITC codification scheme, in the import or the export list, any food item was given the code 00 & crude petroleum was given 03. Correct Answer False Your Answer True Multiple Choice Single Answer Question Pegged Exchange rate was initially advocated by Correct Answer IMF Your Answer IMF Select The Blank Question Complete specialization would mean that a country will produce only one product and ________ production for other products. Correct Answer exchange surplus Your Answer exchange surplus Select The Blank Question Pegged Exchange Rate came to be known as ________. Correct Answer Official Exchange Rate Your Answer Official Exchange Rate Select The Blank Question ________was introduced by the IMF in 1967 Correct Answer SDR Your Answer SDR Select The Blank

Question The main obsticle experienced in tha way of regional blocks is that after growing for 10-15 years ________ reaches a plateau Correct Answer internal trade expansion Your Answer internal trade expansion