Q1. RBI makes changes in the changes in the monetary policy to control the increased demand in the market.
(a) True
(b) False
Answer: (a) True
Q2. The goal of the firm to takeover a significant amount of marker share and take a lead formcompetitors forms a part of the internal environment.
(a) True
(b) False
Answer: (a) True
Q3. Business environment has the same meaning and same impact on all businesses.
(a) True
(b) False
Answer: (b) False
Q4. Products like motorcycle and scooter are complementary products.
(a) True
(b) False
Answer: (b) False
Q5. An organisation brings out the facts related to its standing in the market vis-à-vis the competition by doing a SWOT analysis.
(a) True
(b) False
Answer: (b) False
Q6. Sales manager and salesmen have to be in regular touch with the market so that they are updated with the currents trends. They do a regular scanning.
(a) True
(b) False
Answer: (b) False
Q7. The field of biology and bio-technology poses a big weakness for Indian economy.
(a) True
(b) False
Answer: (b) False
Q8. National Development Council consists of Planning Commission and governors of the state.
(a) True
(b) False
Answer: (b) False
Q9. The economic environment is a subset of —- environment.
Answer: Business
Q10. Kellogg’s failed miserably in India in its first attempt because it failed to assess India’s —- environment.
Answer: Socio-cultural
Q11. India has changed a lot after the LPG policy was introduced in 1991. This shows that business environment is —- .
Answer: Dynamic
Q12. —- helps in study of strategic positioning of the firm and help to assess the business environment also with respect to the competition.
Answer: Porter Five Forces Model
Q13. Automobile majors like Mercedes Benz, BMW, Volkswagen, Rolls Royce etc. all are a part of —- .
Answer: Strategic Group
Q14. For a firm like ITC and HUL, widespread distribution is one of it’s —- .
Answer: Critical Success factors
Q15. In —- the lookout for information is in a more structured and systematic manner.
Answer: Monitoring
Q16. The period of —- five year plan saw a significant growth in the transportation and communications expenditure.
Answer: 7th
Q1. One of the purposes of the industrial policy is to increase the number of entrepreneurs India.
(a) True
(b) False
Answer: (a) True
Q2. The Industrial policy of 1948 propagated that foreign capital inflow should be minimised
(a) True
(b) False
Answer: (b) False
Q3. Under the Industrial Policy of 1956, machine tools and tools steel industry was left only for private sector.
(a) True
(b) False
Answer: (b) False
Q4. New Industrial Policy allowed a 51% FDI in the hospitality sector also.
(a) True
(b) False
Answer: (a) True
Q5. A stock exchange acts a regulator of the capital market.
(a) True
(b) False
Answer: (a) True
Q6. SEBI is an autonomous body that controls the monetary policy of the government.
(a) True
(b) False
Answer: (b) False
Q7. All the companies listed under a stock exchange have to compulsorily offer their securities to public.
(a) True
(b) False
Answer: (a) True
Q8. Privatisation may refer to full or even part purchase of any business by private players
(a) True
(b) False
Answer: (a) True
Q9. —- regulates the Securities Exchange Board of India.
Answer: Securities and Exchange Board of India Act, 1992
Q10. The problem of unequal distribution of income and wealth was first dealt in Industry Policy of —- .
Answer: 1956
Q11. Under Industrial Policy of —-, a separate wing of IDBI was established to feed the credit requirements of small scale industries.
Answer: 1977
Q12. Stocks of all the blue-chip companies are listed and traded in —-
Answer: Bombay Stock Exchange
Q13. —- was created as a company in 1990 under the Companies Act.
Answer: Over the Counter Exchange of India
Q14. When the share market goes up, it is represented by the —- .
Answer: .Bull
Q15. Indian stock market is called the —- .
Answer: Sensex
Q16. When government leases its assets to a private company, it transfers it the —- ownership.
Answer: Tenure
Q1. Countries like North Korea took a capitalist path for development.
(a) True
(b) False
Answer: (b) False
Q2. India ranks very low on per capita income but relatively higher on human development index.
(a) True
(b) False
Answer: (b) False
Q3. India faces a regular mismatch between its exports and imports thereby creating a negative BOP.
(a) True
(b) False
Answer: (a) True
Q4. National income also includes the income earned by non-resident Indians.
(a) True
(b) False
Answer: (a) True
Q5. National income can also used by the governments to prepare Human Development Index.
(a) True
(b) False
Answer: (a) True
Q6. Measures of inflation differ on the basis of basket of goods chosen.
(a) True
(b) False
Answer: (a) True
Q7. Hyperinflation is just an imaginary phenomenon; it does not happen for real.
(a) True
(b) False
Answer: (b) False
Q8. Inflation takes a toll on real incomes of the employees working in organisations.
(a) True
(b) False
Answer: (a) True
Q9. India shows the traits of being a —- economy
Answer: Mixed
Q10. —- was established to put a tab on the outside currency flowing in the economy.
Answer: FERA
Q11. Most of the SMEs face the problems in growth and development due to lack of —- .
Answer: Capital/Infrastructure
Q12. National income is also known as —- .
Answer: GNP
Q13. If in an economy, prices are rising but not steadily or prices are lowered but moderately, the condition is called —- .
Answer: Disinflation
Q14. The rising requirement of crude oil is most likely to result in —- inflation in India.
Answer: Demand Pull
Q15. India is still facing a sluggish growth in its primary sectors specially farming. It resulted in inflation caused due to —- constraints.
Answer: Supply Side
Q16. In an economy, if the price of good A in 2009 is ` 225 and current inflation rate is 5%, then the price of good A in 2010 is most likely to be —-.
Answer: Rs.236.25
Q1. The govt. limits the spheres of —- by reserving the industry for small scale, public and the co-operative sector.
Investment
Q2. —- is an effective tool in the hands of the government to regulate business.
Licensing
Q3. —- is the government that decides whether MNCs can invest in a country or not. Because of these government policies there are very few MNCs in India.
FDI
Q4. The government also tries to influence the location of the —- by permitting tax breaks for establishing industry in a particular region.
Industry
Q5. —- depends upon the purchasing power of the consumer which, in turn, Notes depends upon supply of money and the supply of money is decided by the government (RBI).
Demand
Q6. The —- provides for trifurcation of responsibilities between the Executive, the Legislature and the Judiciary.
Constitution
Q7. The —- comprises two houses-the Lok Sabha and the Rajya Sabha
Union Legislature (Parliament)
Q8. The Parliament is responsible for —- in India.
Enacting laws
Q9. The —- comprises the President, the Vice-President and the Council of Ministers headed by the Prime Minister.
Executive
Q1. —- is about expansion and contraction of money and the central bank is the implementing body of the monetary policy
Answer: Monetary policy
Q2. —- equals to M2 + Term Deposits of residents with a contractual maturity of over one year with the Banking System + Call/Term borrowings from ‘Non-depository’ Financial Corporations by the Banking System.
Answer: M3 (NM3)
Q3. —- of the RBI and other banks are deducted before we calculate the stock of Notes money
Answer: Non-monetary liabilities
Q4. —- of money is a sensitive issue as even a slight imbalance can create havoc in the form of deflation or hyperinflation in the country.
Answer: Supply
Q5. There is a —- relationship between the supply of money and inflation.
Answer: Direct
Q6. —- acts as the banker to the central government as also to the governments of the constituent units of India’s federal system.
Answer: The Reserve Bank of India
Q7. The keynote of —- can be said to be controlled expansion of bank credit and money supply, with special attention to seasonal requirement for credit.
Answer: Monetary policy
Q8. The bank rate is also known as —- .
Answer: Discount rate
Q9. The —- refers to the cash which banks have to maintain with the RBI as a certain percentage of their demand and time liabilities.
Answer: CRR
Q10. A —- liquidity ratio diverts banks from loans and advances to investment in government and other approved securities.
Answer: Higher
Q1. Economics and politics are closely related in the sense that economic theories are based on politics of the economy.
(a) True
(b) False
Answer: (b)False
Q2. The inflation rate will escalate even with a slight change in the monetary policy of the government.
(a) True
(b) False
Answer: (a) True
Q3. New aggregate NM3 is also known as narrow aggregate of money.
(a) True
(b) False
Answer: (b) False
Q4. Supply of money in the economy can be regulated by any nationalized bank.
(a) True
(b) False
Answer: (b) False
Q5. Bank rate is the rate at which RBI lends money to other banks.
(a) True
(b) False
Answer: (a) True
Q6. Fiscal policy is concerned with balanced growth of the economy.
(a) True
(b) False
Answer: (a) True
Q7. Foreign Trade policy of 2002-2007 lays stress on exports of medicinal products from India and import of seeds.
(a) True
(b) False
Answer: (a) True
Q8. Entertainment tax, which is added in the cost of movie tickets, is a direct tax as individuals have to pay that.
(a) True
(b) False
Answer: (b) False
Q9. Savings with the post office is a part of —- aggregate of money supply.
Answer: Old/Broad
Q10. People trust the stocks of the public sector units. This facilitates the —- for controlling monetary supply in the economy.
Answer: Open Market Operations
Q11. —- ratio decides that how much a commercial bank is going to have in form of cash and other readily convertible assets.
Answer: Statutory Liquidity Ratio
Q12. Government wants to put a tab on the sale of automobiles in the country. It can effectively use —- to establish this objective.
Answer: Selective Credit Control
Q13. Governments pay heavy interest rates on the equipments they hire from foreign nations. This type of expense is called —- .
Answer: Revenue Expenditure
Q14. Money borrowed from banks increase the aggregate —- in the economy thereby increasing the prices.
Answer: Money Supply
Q15. —- scheme provides incentives to the exporters if they achieve more than their set goals.
Answer: Target Plus
Q16. Inflationary pressures show their effect more on —- taxes.
Answer: Indirect Taxes
Q1. Poverty is a state when a person is considered to be following a low standard of living.
(a) True
(b) False
Answer: (b) False
Q2. According to a survey, more members in a family means more income and thereby less poverty.
(a) True
(b) False
Answer: (b) False
Q3. A person who is not working because he is not in a physical state to work is also considered voluntarily unemployed.
(a) True
(b) False
Answer: (b) False
Q4. According to a report, giving credit to the people could eliminate poverty.
(a) True
(b) False
Answer: (a) True
Q5. Rural markets serves as the biggest market for FMCG products.
(a) True
(b) False
Answer: (a) True
Q6. Project Shakti works on a direct selling basis in the rural areas.
(a) True
(b) False
Answer: (a) True
Q7. For making huge profits, firms have to forego their business ethics.
(a) True
(b) False
Answer: (b) False
Q8. It is in the social responsibility framework of the companies to ensure quality goods to the consumers.
(a) True
(b) False
Answer: (a) True
Q9. In order to ensure availability of food grains to the poor people, government had introduced —-.
Answer: Public Distribution System
Q10. —- sector sees more people involuntarily unemployed than other sectors.
Answer: Agriculture
Q11. Many people lost jobs during the current economic downturn that hit the globe. This was a case of —- unemployment.
Answer: Cyclical
Q12. Products like washing machines are considered as —- products in rural areas.
Answer: Lifestyle
Q13. Some companies have a code of conduct that every customer should be treated equally irrespective of their status and purchase. This type of code is known as —- code.
Answer: Company
Q14. —- deals with the issue of senior subordinate and company-shareholders relationship.
Answer: Corporate Governance
Q15. According to Mahatma Gandhi, the business leader is the —- of the business and its employees.
Answer: Trustee
Q16. —- company had launched a child care initiative wherein which one rupee went for the education of children when we purchased their cards.
Answer: ITC
Q1. MRTP Act was introduced to check the pricing system under monopolies.
(a) True
(b) False
Answer: (a) True
Q2. Under MRTP Act giving bulk discounts are under restrictive framework.
(a) True
(b) False
Answer: (b) True
Q3. Coca Cola has got a patent for its tag line-thanda matlab Coca Cola.
(a) True
(b) False
Answer: (a) True
Q4. Patents are not such a big issue in the FMCG sector as it is in the pharma sector.
(a) True
(b) False
Answer: (b) False
Q5. The Special branches of police of some of the Union territories are not included under RTI.
(a) True
(b) False
Answer: (b) False
Q6. —- Act was created to protect interests of the common man.
Answer: MRTP
Q7. A group of investors decide not to go to quote any offer at an auction. It is known as —-
Answer: Collective Bidding
Q8. —- means all the notes excluding one rupee notes.
Answer: Indian Currency
Q9. If you visit abroad and shop there, that transaction would be a —- account transaction.
Answer: Current
Q10. The formal patent system in India was introduced by —- .
Answer: Current
Q11. The Maharaja, a popular mascot, is a patented logo of —- .
Answer: Patent Act 1911
Q12. —- days is time limit to get information if the information concerns someone’s’ constitutional rights.
Answer: Air India
Q1. Under FERA, a coupon means representing dividends and interests on securities.
(a) True
(b) False
Answer: (b) False
Q2. A difference between FERA and FEMA is that, violation under FERA is a civil offence and under FEMA is a criminal offence.
(a) True
(b) False
Answer: (a) True
Q3. Any borrowing or lending to the persons residing outside the country are recorded as current account transactions.
(a) True
(b) False
Answer: (a) True
Q4. Under FEMA, mostly —- account transactions are free of any charge.
Answer: Current
Q5. The Foreign Exchange Management Act (FEMA), 1999, has been enacted as part of the ongoing —- .
Answer: Liberalisation process
Q6. The Foreign Exchange Regulation Act was introduced in —-, which was replaced with the Foreign Exchange Regulation Act in 1973 and in 2000 by FEMA.
Answer: 1947
Q7. The object of —- was to conserve foreign exchange and to prevent its misuse
Answer: FERA
Q8. Regulations relating to the —- from India are contained in the Foreign Exchange Management (Export of Goods and Services) Regulations 2000.
Answer: Export of goods and services
Q9. An —- can retain and possess foreign currency and coins within the scope of his authority without any limit
Answer: Authorized person
Q1. FDI would also include the loans and advances made by foreign companies to Indian companies.
(a) True
(b) False
Answer: (a) True
Q2. Coca Cola was asked to leave India because they were not adhering to the rules of Indian market.
(a) True
(b) False
Answer: (b) False
Q3. Companies like IBM and HP have opened their call centre in India only to exploit the cost benefits because labor is costly in their own country.
(a) True
(b) False
Answer: (a) True
Q4. MNC have a positive impact on Indian economy in the sense that people now in addition to Maruti and Tata, also like to buy Hyundai, Ford and Toyota.
(a) True
(b) False
Answer: (b) False
Q5. Most of the Indian public sector banks are Multinational Corporations.
(a) True
(b) False
Answer: (a) True
Q6. Products like petrochemicals, fertilizers etc. were once in the canalized list.
(a) True
(b) False
Answer: (a) True
Q7. One of the major reasons for setting up SEZs is to facilitate exports of a country.
(a) True
(b) False
Answer: (a) True
Q8. Decisions regarding FDI are taken by the Indian Government with association with —- .
Answer: Foreign Investment Promotion Board
Q9. Wal-Mart has taken entry into the Indian market via alliance with —- .
Answer: Bharti Group
Q10. Companies like Swaraj Mazda, Bajaj Allianz, Mahindra Renault are types of —- companies.
Answer: Transnational
Q11. The excess of imports over exports give negative —- .
Answer: Balance of Payments
Q12. Using technical and human cognitive skills of one nation by another nation is called —- .
Answer: Knowledge Transfer
Q13. —- is the first Indian company to look beyond Indian market.
Answer: Aditya Birla Group
Q1. The —- for small-scale industrial units making the same products as the priority industries was also substantially liberalized.
Answer: Import policy
Q2. A scheme for the supply of steel at international prices to exporters of engineering goods was announced. Imports of some raw materials were placed under an —- .
Answer: Open General Licence
Q3. In the field of —-, the Reserve Bank of India introduced a scheme under which preferential rates of discount were provided for refinancing of pre-shipment credits granted by the commercial bank to certain categories of exporters at concessional rates.
Answer: Export credit
Q4. The travel tax had become redundant with the introduction of partial convertibility of rupee and —- under which foreign exchange for travel had to be obtained at the market rate.
Answer: Liberalized Exchange Rate Management System (LERMS)
Q5. The policy aims at enabling the industry to enhance its —- in the global markets and to achieve its full potential in the areas of its strength.
Answer: Competitiveness
Q6. Under the —-, the goods cleared from the Zone will be treated as imported goods.
Answer: SEZ scheme
Q7. It is expected that the states will identify —- for end-to-end development from a geographically contiguous area.
Answer: Product-specific AEZ
Q8. The standard definition applied by —- states that an Export Processing Zone (EPZ) is an industrial area that constitutes an enclave with regard to customs’ tariffs and the commercial code in force in the host country.
Answer: International organisations
Q9. —- is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.
Answer: Special Economic Zone (SEZ)
Q10. EXIM policy of —- freed the trade account transactions from the control of exchanges.
Answer: 1992-1997
Q11. Special centres established by the government for promotion of farming exports are —–
Answer: Agricultural Export Zones
Q1. IMF at its inception had 28 members who sign its agreement.
(a) True
(b) False
Answer: (a) True
Q2. IMF has a role to play in helping the nations to correct the negative balance of payments.
(a) True
(b) False
Answer: (a) True
Q3. India gave World Bank the name, International Bank for Reconstruction and Development.
(a) True
(b) False
Answer: (a) True
Q4. Any country that cannot afford costly vaccinations can also avail grants from the World Bank for this very purpose.
(a) True
(b) False
Answer: (b) False
Q5. Maldives is a part of SAARC but not ASEAN.
(a) True
(b) False
Answer: (b) False
Q6. —- aims at developing an equilibrium between income and employment.
Answer: IMF
Q7. IMF was established in New Hampshire and is headquartered at —- .
Answer: Washington DC
Q8. —-, a body of World Bank, covers all the nations of any type of risks in their investments.
Answer: MIGA
Q9. —- became a member of ASEAN in the year 1995.
Answer: Vietnam
Q10. —- has the full authority to take any decisions relating to international trade.
Answer: Ministerial Conference
Q1. If we sell any product below its cost of production it’s known as dumping.
(a) True
(b) False
Answer: (a) True
Q2. TRIPS cover the patents of a company but not the facility outlay.
(a) True
(b) False
Answer: (b) False
Q3. Any dispute between the trading organisations of the WTO can be presented before the Dispute Settlement Body which works autonomously of WTO.
(a) True
(b) False
Answer: (b) False
Q4. All the protection measures for investments made by the nations is under TRIPS.
(a) True
(b) False
Answer: (b) False
Q5. In second stage of the dispute settlement, the parties can seek mediation of the governing bodies.
(a) True
(b) False
Answer: (b) False
Q6. —- cooperates with the International Monetary Fund, the World Bank and other multilateral institutions to achieve greater coherence in global economic policymaking.
Answer: WTO
Q7. —- allows for special assistance and trade concessions for developing countries.
Answer: GATT
Q8. The WTO —- Agreement is an attempt to narrow the gap in the way rights are protected around the world, and to bring them under common international rules.
Answer: TRIPS
Q9. —- means selling the product at below the on-going market price and/or at the price below the cost of production.
Answer: Dumping
Q10. The —- acts on behalf of the Ministerial Conference on all WTO affairs.
Answer: General Council
Q1. Globalisation refers to only economic interdependence of the nations.
(a) True
(b) False
Answer: (b) False
Q2. With advent of technology the life of a product has increased but the market life has decreased.
(a) True
(b) False
Answer: (a) True
Q3. Adaptive capabilities refers to knowledge the production processes and adapting to the same. 4. Technological literacy also includes the cultural framework of the group within the countries.
(a) True
(b) False
Answer: (b) False
Q4. Technological literacy also includes the cultural framework of the group within the countries.
(a) True
(b) False
Answer: (a) True
Q5. Product of Mahindra -XYLO is not selling well due to lack of product innovation.
(a) True
(b) False
Answer: (b) False
Q6. Most of the companies have R&D centres of their own and India is a hot destination for such R&D activities.
(a) True
(b) False
Answer: (b) False
Q7. Nike gets its shoes stitched and polished in Africa. It is known as rational production.
(a) True
(b) False
Answer: (a) True
Q8. McDonalds follow standardization in quality but customization in offerings in different nations.
(a) True
(b) False
Answer: (a) True
Q9. With increase in globalisation, there is constant switch over of jobs which can affect the organisations adversely.
(a) True
(b) False
Answer: (a) True
Q10. One of the negative impacts of globalisation is that it reduces employment opportunities.
(a) True
(b) False
Answer: (b) False
Q11. Panasonic, a company which is considered high in technological innovation belongs to —- .
Answer: Japan
Q12. When a company acquires another company which produces intermediary products for the company. It is known as —- .
Answer: Vertical Integration
Q13. Opening up of multi-million, BPO industry is a part of —- production practice.
Answer: Rationalised
Q14. —- was India’s first ever nuclear reactor.
Answer: Apsara
Q15. —- refers to the efforts to effectively assimilate technology.
Answer: Innovation
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