INSIGHTS STATIC QUIZ 2020 - 21
Quiz-summary
0 of 5 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
Information
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 5 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- Answered
- Review
-
Question 1 of 5
1. Question
Consider the following statements regarding Imported Inflation.
- When the general price level rises in a country because of the rise in prices of imported commodities, inflation is termed as imported.
- The weakening of the domestic currency may lead to imported inflation in the country.
Which of the above statements is/are correct?
Correct
Solution: c)
When the general price level rises in a country due to the rise in prices of imported commodities, inflation is termed imported. Inflation may also rise due to depreciation of the domestic currency, which pushes up the landed rupee cost of imported items.
Incorrect
Solution: c)
When the general price level rises in a country due to the rise in prices of imported commodities, inflation is termed imported. Inflation may also rise due to depreciation of the domestic currency, which pushes up the landed rupee cost of imported items.
-
Question 2 of 5
2. Question
Which among the following is/are likely to result in current account surplus of Balance of Payments (BoP)?
- Steep fall in global crude oil prices
- Increase in the remittances received from abroad.
- External commercial borrowing
Select the correct answer code:
Correct
Solution: b)
External Commercial borrowing is a part of Capital account.
Incorrect
Solution: b)
External Commercial borrowing is a part of Capital account.
-
Question 3 of 5
3. Question
Which of the following best describes ‘Anti-Dumping’ duty?
Correct
Solution: a)
An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Dumping is a process where a company exports a product at a price lower than the price it normally charges in its own home market.
Incorrect
Solution: a)
An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Dumping is a process where a company exports a product at a price lower than the price it normally charges in its own home market.
-
Question 4 of 5
4. Question
Consider the following statements regarding Current account convertibility.
- Current account convertibility means freedom to convert domestic currency into foreign currency and vice versa for trade in goods and invisibles.
- Under current account convertibility for rupee, an exporter can sell the foreign currency he obtained from exporting a commodity at the market determined exchange rate in India.
- There is partial Current account convertibility in India, so as to limit imports into the country.
Which of the above statements is/are correct?
Correct
Solution: a)
Current account convertibility means freedom to convert domestic currency into foreign currency and vice versa for trade in goods and invisibles (services, transfers or income from investment). Individuals and entities can convert currencies in the foreign exchange market.
Current account convertibility is one part of currency convertibility.
When there is current account convertibility for rupee, an exporter can sell the US Dollars (or other foreign currency) he obtained from exporting a commodity at the market determined exchange rate in India. This means that there is no exchange controls (foreign exchange controls). Similarly, when an importer buys foreign currency from India’s foreign exchange market by exchanging rupee, it is current account convertibility.
In India, there is full current account convertibility since August 20, 1993.
Incorrect
Solution: a)
Current account convertibility means freedom to convert domestic currency into foreign currency and vice versa for trade in goods and invisibles (services, transfers or income from investment). Individuals and entities can convert currencies in the foreign exchange market.
Current account convertibility is one part of currency convertibility.
When there is current account convertibility for rupee, an exporter can sell the US Dollars (or other foreign currency) he obtained from exporting a commodity at the market determined exchange rate in India. This means that there is no exchange controls (foreign exchange controls). Similarly, when an importer buys foreign currency from India’s foreign exchange market by exchanging rupee, it is current account convertibility.
In India, there is full current account convertibility since August 20, 1993.
-
Question 5 of 5
5. Question
The Agreement on Trade-Related Investment Measures (TRIMs), is related to
Correct
Solution: b)
The Agreement on Trade-Related Investment Measures (TRIMs) are rules that are applicable to the domestic regulations a country applies to foreign investors, often as part of an industrial policy. The agreement, concluded in 1994, was negotiated under the WTO’s predecessor, the General Agreement on Tariffs and Trade (GATT), and came into force in 1995. The agreement was agreed upon by all members of the World Trade Organization. Trade-Related Investment Measures is one of the four principal legal agreements of the WTO trade treaty.
TRIMs are rules that restrict preference of domestic firms and thereby enable international firms to operate more easily within foreign markets. Policies such as local content requirements and trade balancing rules that have traditionally been used to both promote the interests of domestic industries and combat restrictive business practices are now banned.
Incorrect
Solution: b)
The Agreement on Trade-Related Investment Measures (TRIMs) are rules that are applicable to the domestic regulations a country applies to foreign investors, often as part of an industrial policy. The agreement, concluded in 1994, was negotiated under the WTO’s predecessor, the General Agreement on Tariffs and Trade (GATT), and came into force in 1995. The agreement was agreed upon by all members of the World Trade Organization. Trade-Related Investment Measures is one of the four principal legal agreements of the WTO trade treaty.
TRIMs are rules that restrict preference of domestic firms and thereby enable international firms to operate more easily within foreign markets. Policies such as local content requirements and trade balancing rules that have traditionally been used to both promote the interests of domestic industries and combat restrictive business practices are now banned.
