Tag: commerce

Questions Related to commerce

Renewal facility enables companies to use public deposits as medium-term finance.

  1. True

  2. False


Correct Option: A
Explanation:

Renewal facility enables companies to use public deposits as medium-term finance- this is a true statement.Public deposits refers to the unsecured securities which is invited from the public. It is mainly used to finance the working capital of the company.

Public deposits of a company cannot exceed _____ per cent of its share capital and free reserves. 

  1. 15

  2. 20

  3. 25

  4. 30


Correct Option: C
Explanation:

Public deposits refers to the unsecured securities which is invited from the public. It is mainly used to finance the working capital of the company. Public deposits of a company cannot exceed 25 per cent of its share capital and free reserves.

State the following statement is True or False:
A document issued to public for collection of capital is prospectus.
  1. True

  2. False


Correct Option: A
Explanation:

A document issued to public for collection of capital is prospectus- this is a true statement.The invitation to public for capital subscriptions is through prospectust. Prospectus provide details about the offer of sale to the public. It is issued by SEBI.

State the following statement is True or False:
The invitation to public for capital subscriptions is through prospectus.

  1. True

  2. False


Correct Option: A
Explanation:

The invitation to public for capital subscriptions is through prospectus- this a true statement. Prospectus provide details about the offer of sale to the public. It is issued by SEBI.

The objective of the World Bank is _____________.

  1. to remove the short term disequilibrium is the balance of payments of the member countries

  2. to eliminate the long term disequilibrium in the balance of payments of the member of countries

  3. to eliminate the medium term disequilibrium in the balance of payments of the member of countries

  4. all the above


Correct Option: B

The acronym for general agreement for tariffs and trade is _________.

  1. WTO

  2. IMF

  3. GATT

  4. ITO


Correct Option: C
Explanation:

The acronym for General Agreement for Tariffs and Trade is GATT. The main aim of GATT is to promote international trade by eliminating trade barriers.

Which of the following are international trade institutions?

  1. IMF

  2. IBRD

  3. ITO

  4. All of the above


Correct Option: D
Explanation:

International trade institutions are established for various aspects and regulations in the international trade, some of these institutions are International Monetary Fund (IMF), International Bank for Reconstruction and Development (IBRD), International Trade Organization (ITO). 

The World Bank is significantly involved in eradication of poverty through raising productivity.

  1. True

  2. False


Correct Option: A
Explanation:

The world bank is significantly involved in eradication of poverty through raising productivity in the underdeveloped nations by helping them in industrial and agricultural economies and creating employment opportunities for the poor.

The Foreign Exchange Management Act (FEMA) was implemented in the year _______.

  1. 1996

  2. 1997

  3. 1998

  4. 1999


Correct Option: D
Explanation:

The Foreign Exchange Management Act (FEMA) was implemented in the year 1999, it is an Act of the Parliament of India "to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.

In the World Bank's Ease of doing Business Ranking, 2015 India is placed at _________.

  1. 154 place out of the total 184 economies

  2. 142 place out of the total 189 economies

  3. 148 place out of the total 190 economies

  4. 146 place out of the total 188 economies


Correct Option: B