Growth Prospects Set 1

QN1. The Foreign Trade Policy in India is announced by

A. Ministry of Finance, Government of India

B. Ministry of Commerce, Government of India

C. Ministry of External Affairs, Government of India

D. Director General of Foreign Trade

Answer

Answer: B. Ministry of Commerce, Government of India

QN2. Which of the following is NOT a part of the European Union?

A. France

B. Germany

C. Iceland

D. Slovenia

Answer

Answer: D. Slovenia

QN3. Focus LAC programme lays emphasis on India’s major trading partners. The major trading partners include:

A. Brazil, Venezuela, Chile

B. Argentina, Peru, Colombia

C. Bahamas, Trinidad, Ecuador

D. All of the above

Answer

Answer: A. Brazil, Venezuela, Chile

QN4. Export Promotion Capital Goods (EPCG) Scheme is for:

A. Import of Raw Materials by Manufacturers

B. Import of Capital Goods by Manufacturers and Merchant Exporters

C. Export of Capital Goods by Manufacturers only

D. Export and Import of Capital Goods by merchant as well as manufacturers

Answer

Answer: C. Export of Capital Goods by Manufacturers only

QN5. APEDA is associated with:

A. Promotion of agriculture and improving agricultural practices

B. Promotion of exports of packaged products from India

C. Promotion of exports agricultural and processed food products

D. Promotion of exports of organic agricultural products from India

Answer

Answer: A. Promotion of agriculture and improving agricultural practices

QN6. Foreign Trade (Development and Regulation) Act, was introduced in:

A. 1991

B. 1992

C. 2002

D. 2004

Answer

Answer: B. 1992

QN7. DGCI&S is:

A. Director General of Commercial Intelligence and Statistics

B. Directorate General of Commercial Intelligence and Statistics

C. Director General of Central Improvement and States

D. None of the above

Answer

Answer: A. Director General of Commercial Intelligence and Statistics

QN8. The objectives of Foreign Trade Policy 2004-2009 were:

A. To double India’s percentage share of global merchandise trade by 2009; and

B. To act as an effective instrument of economic growth by giving a thrust to employment generation, especially in semi-urban and rural areas

C. Both A and B

D. None of the above

Answer

Answer: C. Both A and B

QN9. MDA refers to ___:

A. Market Development Assistance

B. Market Discovery Assistance

C. Marketing Development Assistance

D. None of the above

Answer

Answer: C. Marketing Development Assistance

QN10. The objectives of MDA are to:

A. Assist Export Promotion Councils (EPCs) to undertake export promotion activities for their product(s) and commodities

B. Assist Focus export promotion programmes in specific regions abroad like FOCUS (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN + 2) programmes.

C. Assist approved organizations/trade bodies in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts for their members

D. All of the above

Answer

Answer: A. Assist Export Promotion Councils (EPCs) to undertake export promotion activities for their product(s) and commodities

QN11. Which of these is the eligible activity for assistance provided under MAI scheme?

A. Assist exporters for export promotion activities abroad

B. Residual essential activities connected with marketing promotion efforts abroad.

C. Opening of Showrooms & Warehouses

D. Assist approved organizations in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts

Answer

Answer: D. Assist approved organizations in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts

QN12. Under MAI scheme, financial assistance MAY NOT be provided to:

A. Export Promotion Councils

B. All individual exporters

C. Registered Trade Promotion Organisation

D. Commodity Boards

Answer

Answer: B. All individual exporters

QN13. Which of these countries is NOT a part of Focus LAC programme?

A. Barbados

B. Guyana

C. British Virgin Islands

D. Fiji

Answer

Answer: C. British Virgin Islands

QN14. FOCUS LAC programme is to promote India’s trade with:

A. Least-developed African countries

B. Latin American Countries

C. Both A and B

D. None of the above

Answer

Answer: B. Latin American Countries

QN15. Which of these commodities is NOT a principal commodity exported by India:

A. Gems & Jewellery

B. Textiles

C. Pulses

D. Engineering Goods

Answer

Answer: C. Pulses

QN16. Which of these is a ‘thrust sectors for exports’, as identified by the Government of India include:

A. Leather and Leather goods

B. Chemicals

C. Education Services

D. Petroleum products

Answer

Answer: A. Leather and Leather goods

QN17. There are 9 Commodity Boards for all EXCEPT one of the following commodities:

A. Coffee

B. Tea

C. Rubber

D. Wheat

Answer

Answer: C. Rubber

QN18. Which of these is NOT an incentive provided to units in an SEZ?

A. Duty free import/domestic procurement of goods for development, operation and maintenance of units

B. Exemption from export commitments

C. Exemption from Central Sales Tax

D. Exemption from Service Tax

Answer

Answer: D. Exemption from Service Tax

QN19. Which of these is the correct combination for minimum area requirements for setting up a SEZ?

1 IT/ITES/handicrafts SEZ Bio-technology/ non-conventional energy/gems and jewellery Sector A 100 hectares

2 Sector Specific SEZ B 40 hectares

3 FTWZ C 1000 hectares

4 Multi Sector SEZ D 10 hectares

A. 1A; 2B; 3C; 4D

B. 1D; 2A; 3B; 4C

C. 1C; 2A; 3D; 4B

D. 1A; 2D; 3B; 4C

Answer

Answer: B. 1D; 2A; 3B; 4C

QN20. Export Credit Guarantee Corporation (ECGC) provides the following types of cover to the exporters?

A. Standard policies

B. Special policies

C. Financial guarantees

D. All of the above

Answer

Answer: D. All of the above

QN21. The functions of India Trade Promotion Organisation (ITPO) include:

A. Providing information and market intelligence to the business community

B. Issuing insurance policies to exporters

C. Financing India’s imports and exports

D. Providing financial guarantees to banks against the risks involved in providing credit to exporters

Answer

Answer: A. Providing information and market intelligence to the business community

QN22. Indian Institute of Foreign Trade (IIFT) is located in?

A. New Delhi

B. Kolkata

C. New Delhi and Kolkata

D. None of the above

Answer

Answer: B. Kolkata

QN23. The products covered by APEDA include all, EXCEPT:

A. Meat and meat products

B. Seafood and marine products

C. Poultry and poultry products

D. Dairy products

Answer

Answer: B. Seafood and marine products

QN24. There are 19 Export Promotion Councils. The products which are not covered by Export Promotion Councils are?

A. Basic Chemicals, Pharmaceuticals and Cosmetics

B. Gems and Jewellery, Leather and Leather goods

C. Coffee, Tea, Spices

D. Electronics & Computer software Engineering

Answer

Answer: D. Electronics & Computer software Engineering

QN25. The objectives of the Export Promotion Council for EOUs and SEZs (EPCES) are:

To promote exports from India and to earn more foreign exchange for the country.

To facilitate interaction between the exporting community and government both at the Central and State level

To canalize financial assistance rendered by the Central Government to members for assisting their export market development efforts.

All of the above

None of the above

Answer

Answer: To promote exports from India and to earn more foreign exchange for the country.

QN26. Asia’s first Export Processing Zone (EPZ) was set up in:

A. Mumbai in 1965

B. Kandla in 1965

C. Chennai in 1965

D. Kolkata in 1965

Answer

Answer: B. Kandla in 1965

QN27. Which of these are the purposes of setting up EOU’s/ SEZs:

A. Promotion of investment – from domestic and foreign sources

B. Creating employment opportunities

C. Developing infrastructure facilities

D. All of the above

E. None of the above

Answer

Answer: C. Developing infrastructure facilities

QN28. Exports and Imports come under the purview of:

A. Ministry of Finance

B. Ministry of Commerce

C. Ministry of External Affairs

D. Ministry of International Affairs

Answer

Answer: B. Ministry of Commerce

QN29. Which one of the following is not a cause but a consequence of Globalisation?

A. Deregulation abroad

B. Integration of Markets

C. Greater institutionalization abroad

D. Greater Risk Exposure

Answer

Answer: C. Greater institutionalization abroad

QN30. An OBU set up in SEZ by a bank in India is subject to:

A. CRR/SLR stipulation of RBI

B. No Capital Adequacy Norms

C. No CRR/SLR stipulation of RBI

D. No restrictions from Government of India.

Answer

Answer: C. No CRR/SLR stipulation of RBI

QN31. If a country is having more exports than imports in value terms, it can be said that the country is having:

A. BOP crisis

B. Deficit under BOT

C. Surplus under BOT

D. Surplus under BOP

Answer

Answer: C. Surplus under BOT

QN32. An appreciation of the Rupee relative to the US Dollar would be expected to have which of the following effects?

A. Increase US exports to India

B. Increase US imports from India

C. Raise the cost to Americans for Indian imports

D. Create Balance of Payments surplus for India

Answer

Answer: C. Raise the cost to Americans for Indian imports

QN33. India is among the 15 leading exporters of agricultural products in the world. It had a share of ____ per cent in world trade in agriculture in 2008.

A. 1.2

B. 0.76

C. 1.6

D. 1.8

Answer

Answer: D. 1.8

QN34. The largest importer of agricultural products in 2008 was ______?

A. European Union (27)

B. United States

C. Japan

D. China

Answer

Answer: A. European Union (27)

QN35. The largest exporter of agricultural products in 2008 was ______?

A. European Union (27)

B. United States

C. Brazil

D. Canada

Answer

Answer: B. United States

QN36. Consumer food industry does not include:

A. packaged foods

B. packaged drinking water

C. alcoholic beverages

D. fresh fruits and vegetables

Answer

Answer: C. alcoholic beverages

QN37. Challenges faced by India’s gems and jewellery sector are:

A. Unorganized sector

B. Low level of R&D and product development

C. Possible Threats from China and from Other Countries Producing Diamonds

D. All of the above

Answer

Answer: D. All of the above

QN38. Which of these is the strength of Indian Leather and Leather goods sector?

A. World-class institutional support for Design & Product Development, HRD and R & D

B. Presence of support industries like leather chemicals and finishing auxiliaries

C. Presence in major markets

D. All of the above

Answer

Answer: D. All of the above

QN39. Which of these is NOT a focus product group for enhancing India’s exports to the Latin American region:

A. Textiles including ready-made garments, carpets and handicrafts

B. Engineering products and computer software

C. Chemical products including drugs/pharmaceuticals

D. Gems and jewellery

E. All of the above

Answer

Answer: D. Gems and jewellery

QN40. The state with the major share in production of leather and leather products is___?

A. Tamil Nadu

B. Kerala

C. Manipur

D. Assam

Answer

Answer: C. Manipur