Practice Test

Q1) Types of foreign trade. a) Import trade b) Export trade c) Entrepot trade d) Internal trade Show Answer

Q2) Export trends of India's foreign trade includes - a) Engineering goods b) Gems and Jewellery c) Textiles and readymade garments d) Gold Show Answer

Q3) Role of foreign trade is - a) To earn foreign exchange b) To encourage investment c) To provide for division of labour d) To bring change in composition of export Show Answer

Q4) Before independence India was exporting raw materials to - a) USA b) Japan c) England (Britain) d) None of these Show Answer

Q5) Internal trade also known as - a) Domestic trade Home trade b) Home trade c) External trade. d) All of these Show Answer

Q6) International or External trade takes place between- a) two or more districts b) two or more states c) two or more countries d) none of these Show Answer

Q7) Most important commodity in India's import is - a) Petroleum, oil and lubricants b) Food grains c) Engineering goods d) Readymade garments Show Answer

Q8) According to Walter Krause definition of Balance of Payment, value of exchange of goods and services is considered among - a) the citizens and businessmen b) the firms c) the government d) none of these Show Answer

Q9) Trade surplus means - a) Export value > Import value b) Export value < Import value c) Export value = Import value d) All of these Show Answer

Q10) Balance of trade includes- a) the value of imports of visible and invisible goods b) the valueof imports of only visible goods c) the value of imports and exports of visible and invisible goods d) the value of exports of visible and invisible goods. Show Answer

Q11) International trade is important because - a) it helps in optimal utilisation of resources b) it brings stability in price level c) it helps to earn foreign exchange d) it encourages investment Show Answer

Q12) The share of India's foreign trade in Gross National Income during 2016-17 was - a) 25% b) 17.55% c) 48.8% d) None of these Show Answer

Q13) In recent years India's leading trading partners are - a) USA, Germany, Japan, UK b) Britain c) Nepal, Sri Lanka, UK d) None of these Show Answer

Q14) Which of the following is not a benefit of international trade- a) provides multiple choices of imported goods b) leads to division of labour c) high wage levels for all domestic workers d) can earn reputation and goodwill in the international market Show Answer

Q15) There is a change in the composition of India's exports from - a) primary products to manufactured products b) manufactured products to primary products c) manufactured products to software d) All of these Show Answer

Q16) Foreign trade is also known as:
i. Internal trade
ii. External trade
iii. Home trade
iv. International trade Show Answer

Q17) Trade represents a significant share of Gross Domestic Product in:
i. developed countries
ii. developing countries
iii. poor countries
iv. least developed countries Show Answer

Q18) Foreign trade helps to maintain stability in:
i. demand position
ii. supply position
iii. prices
iv. employment Show Answer

Q19) The commodities purchased by India from other countries include:
i. Fertilizers
ii. Steel
iii. Spices
iv. Iron Show Answer

Q20) The leading trade partners of India are:
i. USA
ii. Germany
iii. Japan
iv. Bhutan Show Answer

Q21) Balance of payments is:
i. constructed for given period
ii. systematic record
iii. value of all international transactions
iv. based on market prices Show Answer

Q22) The balance of trade includes the value of:
i. Imports of visible goods
ii. Exports of visible goods
iii. Imports of invisible goods
iv. Exports of invisible goods Show Answer

Q23) Assertion (A): Import trade leads to inflow of goods to home country.
Reasoning (R): Import trade is a type of internal trade. Show Answer

Q24) Assertion (A): Foreign trade leads to optimum allocation of resources.
Reasoning (R): There are three types of foreign trade. Show Answer

Q25) Assertion (A): Foreign trade raises the standard of living.
Reasoning (R): Being highly competitive, foreign trade ensures quality of goods. Show Answer

Q26) Assertion (A): Foreign trade stabilizes the price level in the economy.
Reasoning (R): Foreign trade helps to maintain the stable demand and supply position. Show Answer

Q27) Assertion (A): India turned a net importer of petroleum refinery products.
Reasoning (R): India's petroleum capacity increased significantly since 2001-02. Show Answer

Q28) Assertion (A): The government undertook various policy measures to curb gold imports.
Reasoning (R): There was a significant drop in gold imports during 2013-14. Show Answer

Q29) Before _________, the pattern of India’s foreign trade was typically colonial. Show Answer

Q30) If goods Droduced in Mizoram are sold to Nagpur, then it is known as _________. Show Answer

Q31) There are _________ types of foreign trade. Show Answer

Q32) Prior to independence, India used to import _________. Show Answer

Q33) Most of India’s trade takes place through routes _________. Show Answer

Q34) Prior to Independence, much of India’s trade was done with _________. Show Answer

Q35) Textiles and garment exports together accounted for _________ of India’s exports in 2014-15. Show Answer

Q36) _________ has always remained the most important item of imports in India's trade. Show Answer

Q37) The share of fertilizers in import expenditure declined to ________ in 2016-17. Show Answer

Q38) According to Ellsworth. “________ is a summary statement of all the transactions between the residents of one country and the rest of the world.” Show Answer

Q39) If import value is ________ export value, then it is called as trade deficit. Show Answer

Q40) ________ is also referred to as the international trade balance. Show Answer