Commerce Questions and Answers - Set 5

1 Interest earned by a depositor against a deposit with a commercial bank for custodial service :

1 is a fund based income

2 is a fee based income

3 is a combination of fund and fee based gain

4 is a commitment based gain

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Answer: is a fund based income

2 The operations of banks and financial institutions are regulated by :

1 The RBI Act 1934 only

2 The Banking Regulation Act 1949 only

3 Information Technology Act 2000 only

4 All of the above

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Answer: All of the above

3 To operationalise online, internet, mobile banking, debit card and credit card tools, some of the essential ingredients are :

1 Compliance with the Information Technology Act 2000

2 Satellite connection

3 Selection of a portal and server

4 All of the above

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Answer: All of the above

4 Any country consistently facing balance of payment deficiency can approach

1 The World Bank

2 The Smithsonian Institute

3 IMF

4 The IMF and the IBRD

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Answer: IMF

5 Counter–trade means :

1 A sort of bilateral trade where one set of goods is exchanged for another set of goods and a seller provides a buyer with deliveries

2 A company takes full responsibility for making its goods available in the target market by selling directly to the end-users.

3 The companies in two separate sovereigns agree to exchange one set of goods for another set of goods

4 A set of multilateral trade where one of goods and services may be exchanged for another set of goods and services among the trading partners.

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Answer: A sort of bilateral trade where one set of goods is exchanged for another set of goods and a seller provides a buyer with deliveries

6 The floating rate system is characterised by :

1 the market forces that determine the exchange rate between two currencies.

2 the central banking authorities of the two countries mutually agree upon the rate.

3 help realigning the par value of major currencies.

4 the rate of exchange mutually agreed upon between IMF and its member nations

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Answer: the market forces that determine the exchange rate between two currencies.

7 A practice of selling a commodity in a foreign market at a price lower than the domestic price; and even at equal to the cost of production to capture foreign market is known as :

1 Gouging

2 Forging

3 Dumping

4 Forfeiting

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Answer: Dumping

8 The highest percentage of export from India went to which of the following regions in 2013-14 ?

1 OECD countries

2 SAARC

3 USA

4 Latin America

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Answer: OECD countries

9 X Ltd. goes into liquidation and a new company Z Ltd. purchases the business of X Ltd. It is a case of :

1 Amalgamation

2 Internal reconstruction

3 Absorption

4 External reconstruction

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Answer:External reconstruction

10 When the cost incurred on recruiting, training and developing the employees is considered for determining the value of employees, it is called :

1 The replacement cost approach

2 The opportunity cost approach

3 The historical cost approach

4 None of the above

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Answer: The historical cost approach

11 In India, NIFTY and SENSEX are calculated on the basis of :

1 Market capitalisation

2 Paid up capital

3 Authorized share capital

4 Free-float market capitalisation

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Answer: Free-float market capitalisation

12 Financial Instruments which are issued with detachable warrants and are redeemable after certain period is known as

1 Deep Discount Bonds

2 Bunny Bonds

3 Secured Premium Notes

4 Junk Bonds

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Answer: Secured Premium Notes

13 In addition to motivation, learning and memory, which one of the following is included in the main psychological processes affecting consumer behaviour ?

1 Perception

2 Life cycle

3 Life style

4 Social class

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