Questions Related to commerce

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

IMF acts as a __________ credit institution.

  1. long-term

  2. short-term

  3. both A & B

  4. neither A & B

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The IMF provides short-term financial assistance to member countries to help them stabilize their balance of payments. It is not designed for long-term development financing, which is the role of institutions like the World Bank.

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

Which among the following is a function of the IMF?

  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

Reveal answer Fill a bubble to check yourself
D Correct answer
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.

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

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

  1. Promote international monetary cooperation

  2. Promote balanced growth of international trade

  3. Promote weapons development in developing nations

  4. All of the above

Reveal answer Fill a bubble to check yourself
C Correct answer
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.

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

Commercial papers provide _______ funds as compared to other sources.

  1. less

  2. more

  3. medium

  4. equal

Reveal answer Fill a bubble to check yourself
B Correct answer
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. 
Multiple choice commerce sources of business finance - 2 commercial paper non-institutional sources - short-term short term sources of finance

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

  1. Secured

  2. Unsecured

  3. Both a and b

  4. None of the above

Reveal answer Fill a bubble to check yourself
B Correct answer
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.

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

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

  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

Reveal answer Fill a bubble to check yourself
C Correct answer
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.