Commerce Questions and Answers for Competitive Exams | Commerce Quiz Set 5

Questions
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

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

Answer: All of the above

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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

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

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.

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

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

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

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

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

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

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

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

Answer: Perception
14 Which one of the following is not a stage in the product life cycle ?
1 Introduction
2 Growth
3 Equilibrium
4 Decline

Answer: Equilibrium
15 Which one of the following is correct statement in respect of co-branding ?
1 Co-branding is an umbrella branding of goods of a company
2 In co-branding, two or more well-known existing brands are combined into a joint product.
3 Co-branding is the process of combining two brands for promoting brand equity.
4 All of the above

Answer: In co-branding, two or more well-known existing brands are combined into a joint product.

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