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Commerce MCQs

  • GATT is an abbreviation for

    (A) General Agreement on Transport and Trade
    (B) General Agreement on Tariffs and Trade
    (C) Generally Accepted Telegraphic Transfer
    (D) Generally Accepted on Trade and Telegraph

    The answer is: (B) General Agreement on Tariffs and Trade

  • The headquarter of World Trade Organization (WTO) is located in

    (A) London
    (B) New York
    (C) Washington
    (D) Geneva

    The answer is: (D) Geneva

  • Exports are _____, and imports are _____.

    (A) debits, credits
    (B) credits, debits
    (C) assets, liabilities
    (D) liabilities, assets

    The answer is: (B) credits, debits
    Exports are credits and imports are debits.

  • What is the “working capital” if:

    Q. What is the “working capital” if:
    cash in hand = 40,000; stock = 20,000; debtors = 15,000; current liabilities = 30,000
    (A) 30,000
    (B) 35,000
    (C) 40,000
    (D) 45,000

    The answer is: (D) 45,000
    40,000+20,000+15,000-30,000=45,000

  • Professionals employed by insurance companies to calculate factors such as life expectancy and likely payouts are known as

    (A) Actuary
    (B) Accountant
    (C) Chartered Accountant
    (D) CFO

    The answer is: (A) Actuary
    Professionals employed by insurance companies or pensions providers to calculate factors such as life expectancy and likely payouts are known as “Actuary”.

  • A letter of credit is opened (or issued) on behalf of a/an

    (A) exporter
    (B) importer
    (C) buying agent
    (D) bank

    The answer is: (C) buying agent
    A letter of credit is opened (or issued) on behalf of a buying agent.

  • Net Present Value (NPV) is calculated as

    (A) cash inflow – cash outflow
    (B) cash outflow – cash inflow
    (C) PV of cash inflow – PV of cash outflow
    (D) PV of cash outflow – PV of cash inflow

    The answer is: (C) PV of cash inflow – PV of cash outflow

  • IMF provides assessments of latest public finance developments in its

    (A) Fiscal Monitor Reports
    (B) World Economic Outlook Reports
    (C) Global Financial Stability Reports
    (D) None of these

    The answer is: (A) Fiscal Monitor Reports

  • The ratio between amount of profit and investment is known as

    (A) NPV
    (B) opportunity cost
    (C) risk premium
    (D) rate of return

    The answer is: (D) rate of return

  • In Finance, risk is calculated by calculating the _____ of possible outcomes.

    (A) mean
    (B) standard deviation
    (C) variance
    (D) kurtosis

    The answer is: (B) standard deviation