MCQs Fiscal Policy

41-Which among below is NOT a correct statement?

a.      Bretton Woods conference gave birth to two international organizations-

b.     Theory of Absolute Advantage in international trade is given by Adam Smith’

c.      Pure and perfect competition is the same market structures.

d.     Mint par theory of exchange rate determination is applicable in countries under gold standard.

(Ans: c)

42-Terms of trade that relate to the Real Ratio of international exchange between commodities is called:

a.      Real cost terms of trade

b.     Commodity terms of trade

c.      Income terms of trade

d.     Utility terms of trade

(Ans: c)

  

43-Who among the following enunciated the concept of single factoral terms of trade?

a.      Jacob Viner

b.     G.S.Donens

c.      Taussig

d.     J.S.Mill

(Ans: a)

44-‘Infant industry argument’ in international trade is given in support of:

a.      Granting Protection

b.     Free trade

c.      Encouragement to export oriented small and tiny industries

d.     None of the above

(Ans: a)

45-Which of the following is also known as International Bank for Reconstruction and Development?

a.      Asian Development Bank

b.     World Bank

c.      Reserve Bank of India

d.     International Monetary Fund

(Ans: b)

46-Which among the following is not a function of International Monetary Fund?

a.      It serves a medium term and long term credit institution’

b.     It provides a mechanism for improving short term balance of payments position’

c.      It provides machinery for international consultations’

d.     It provides reservoir of the currencies of the member countries and enables members to borrow one another’s currency’

(Ans: a)

47-The new world Trade organization (WTO), which replaced the GATT came into effect from____

a.      1^ST January 1991

b.     1^st January 1995

c.      1^st April 1994

d.     1^st May 1995

(Ans: b)

48-A change in fiscal policy affects the balance of payments through:

a.      The current account only

b.     The capital account only

c.      Both, the current account and capital account

d.     Neither current account nor capital account

(Ans: c)

49-Fiscal Policy means:

a.      Policy relating to money and banking in a country

b.     Policy relating to non-banking financial institutions

c.      Policy relating to government spending’ taxation and borrowing

d.     Policy relating to financial matters of international trade

(Ans: c)

50-Which one of the following is NOT the objective of fiscal policy of government of India?

a.      Full employment

b.     Price stability

c.      Regulation of inter-state trade

d.     Economic growth

(Ans: c)