Tag: commerce

Questions Related to commerce

Objective of IMF is to assist in the establishment of multilateral system of payments in respect of current transaction between member countries.

the wto and india world trade organisation international business commerce business studies

  1. True

  2. False

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Correct Option: A
Explanation:

Objective of IMF is to assist in the establishment of multilateral system of payments in respect of current transaction between member countries.

IMF provides machinery for international consultations.

the wto and india world trade organisation international business commerce business studies

  1. True

  2. False

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Correct Option: A

IMF acts as a __________ credit institution.

the wto and india world trade organisation international business commerce business studies

  1. long-term

  2. short-term

  3. both A & B

  4. neither A & B

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Correct Option: B

The full form of IDA is International Development Association. 

the wto and india world trade organisation international business commerce business studies

  1. True

  2. False

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Correct Option: A

Which among the following is a function of the IMF?

the wto and india world trade organisation international business commerce business studies

  1. Acting as short term credit institution

  2. Promoting orderly adjustment of exchange rate

  3. Lending institution of foreign currency and current transaction

  4. All of the above

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Correct Option: D
Explanation:

The functions of IMF are :

1: Acting as a short term credit institution
2: Promoting orderly adjustment of exchange rate
3: Lending instituions of foreign currency and current transaction.

The headquarters of the IMF is located in _______________.

the wto and india world trade organisation international business commerce business studies

  1. New York

  2. Los Angeles

  3. Washington D.C

  4. London

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Correct Option: C

Which among the following is not the major objectives of the IMF?

the wto and india world trade organisation international business commerce business studies

  1. Promote international monetary cooperation

  2. Promote balanced growth of international trade

  3. Promote weapons development in developing nations

  4. All of the above

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Correct Option: C
Explanation:

The major Objectives of IMF are 

1: to promote international monetary cooperation.
2: To promote balanced growth of international trade.

To promote weapons development in developing nations is not an objective of the IMF.

Commercial papers provide _______ funds as compared to other sources.

commerce sources of business finance - 2 commercial paper non-institutional sources - short-term short term sources of finance

  1. less

  2. more

  3. medium

  4. equal

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Correct Option: B
Explanation:
The size of money that can be raised through commercial paper is limited to the excess liquidity available with the suppliers of funds at a particular time. Commercial paper provides more funds as compared to other sources. 

A commercial paper is sold on an __________ basis and does not contain any restrictive conditions.

commerce sources of business finance - 2 commercial paper non-institutional sources - short-term short term sources of finance

  1. Secured

  2. Unsecured

  3. Both a and b

  4. None of the above

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Correct Option: B
Explanation:

Commercial paper emerged as a source of short-term finance in our country in the early nineties.

Commercial paper is sold on an unsecured basis and does not contain any restrictive conditions. It is issued by one firm to another business firm, insurance companies, banks etc.

Which one of the following is not a merit of commercial paper?

commerce sources of business finance - 2 commercial paper non-institutional sources - short-term short term sources of finance

  1. A commercial paper is sold on an unsecured basis.

  2. As its is a freely transferable instrument, it has high liquidity.

  3. Only financially sound and highly rated firms can raise money through commercial papers.

  4. Companies can park their excess funds in commercial paper

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Correct Option: C
Explanation:

One of the demerits of commercial paper is that only financially sound and highly rated firms can raise money through commercial paper as it is an unsecured promissory note issued by a firm to raise funds for a short period of time.