MCQ Based Questions on Class 11 Business studies for chapter-12 International Business II
Find below MCQ Based Questions on Class 11 Business studies for chapter-12 International Business II all the MCQ questions are explained with correct answers and explanations. To check the correct answer click on the answer.
Find MCQ questions for class 11 Business studies-12 International Business II
Business Studies - MCQ on International Business II
Class XI
Q. 1.Which one of these is the subsidiary of the state trading corporation of India meant for increasing exports
I. Minerals and metals trading corporation of India
II. Manufacturers export agents and export commission house
III. Projects and Equipments Corporation of India
IV. Mica Trading Corporation of India
Answer:
IV.Mica Trading Corporation of India
Explanation: It is the subsidiary for encouraging exports in india
Q. 2.The term duty draws back means
I. Higher rate of import duty
II. Refund of import duty for the exporters
III. Refund of export duty for exporters
IV. Handicap in matter of exports
Answer:
II.Refund of import duty for the exporters
Explanation: Duty draw back is giving back the import duty to the exporters
Q. 3.A letter of credit is
I. Letter of importer’s bank agreeing to accept and play on due date exporters bill
II. Letter containing conditions of credit
III. Purchase of sale
IV. Letter from an exporter to importer
Answer:
. I.Letter of importer’s bank agreeing to accept and play on due date exporter’s bill
Explanation: Letter sent by an importer to exporter sanctioning credit deal
A letter of credit is a guaranteeissued by the importer’s bank that it will honour payment up to certain amount of export bills to the bank of the exporter. Letter of credit is the most Appropriate and secures method of payment adopted to settle international Transactions
Q. 4.The importer cannot take delivery of goods unless he produces the
I. Bill of Sight
II. Bill of Lading
III. Shipping Bill
IV. Certificate of origin
Answer:
.II.Bill OF Lading
Explanation:Bill of lading is a document wherein a shipping company gives its official receipt of the goods and at the same time gives an undertaking to carry them to the port of destination.
Q. 5.Which one of the above policy measures would lead to an expansion of exports
I. Export Duty
II. Export subsidy
III. Liberal import entitlement
IV. Import Duty
Answer:
.II,Export Subsidy
Explanation:If export subsidy will be provided then definitely it will give rise to Export.
Q. 6.Which one of the following items is not in vogue now?
I. REP Licenses
II. Advance Licenses
III. Special Import Licenses
IV. Customs Permit
Answer:
III.Special Import Licenses
Explanation:Earlier special import license were given a lot of importance but now they are not so preferred
Q. 7.Which of the following items are not considered to be export promotion measures?
I. Quota Certificates,
II. Cash compensatory assistance
III. System of exchange control
IV. None
Answer:
I.Quota Certificates,
Explanation: Quota Certificates are not meant for export encouragement
Q. 8.Bill of Lading is issued by
I. Indian Commercial Banks
II. Foreign Banks
III. Shipping Company
IV. Exporters
Answer:
III.Shipping Company
Explanation: After receipt of the freight, the shipping company issues a bill of lading which serves as an evidence that the shipping company has accepted the goods for carrying to the designated destination.
Q. 9.Letter of Credit is now becoming An increasingly popular method of financing
I. Fixed Capital Needs
II. Working Capital Needs
III. Redemption of Debenture
IV. Distribution of Dividend
Answer:
II.Working Capital Needs
Explanation A letter of credit is a guarantee issued by the importer’s bank that it will honour up to a certain amount the payment of export bills to the bank of the exporter. Letter of credit is the most appropriate and secures method of payment adopted to settle international transactions
Q. 10.Import procedure begins with
I. Indent
II. Marine Insurance
III. Mate’s Certificate
IV. Shipping order
Answer:
I.Indent
Explanation It is a document in which the buyer (importer) orders for
supply of requisite goods to the supplier (exporter). The order or indent contains the
information such as quantity and quality of goods to be imported, price to be charged, method of forwarding the goods, nature of packing, mode of payment, etc.
Q. 11.Which Statement is correct
I. EXIM banks promote Indian exports through a wise variety of range of landing programmes
II. EXIM bank does not extends non funded facility to Indian exporter
III. Overseas investment finance facility is not a part of th functions of EXIM Banks
IV. EXIM Bank was establishing to provide assistance in raising capital in international markets
Answer:
.I.EXIM banks promote Indian exports through a wide variety of range of landing programmes
Explanation: It acts as a mediator and risk taker
Q. 12.EXIM Bank can be described as
I. Non Banking Financial Company
II. Commercial Bank
III. Non Banking Non Financial Company
IV. Schedule Bank
Answer:
III.Non Banking Fianncial Company
Explanation: EXIM bank mainly act as a mediator between importer and exporter so it is not a financial institution but it I a risk taker
Q. 13.LIBOR refers to
I. Liberalised system of foreign exchange transfer between Banks
II. Inter Bank lending rate for Euro dollars at London
III. Lowest rate of Interest at which hauks in London len sterling
IV. Lowest rate of interest prescribed by RBI
Answer:
IV.Lowest rate of Interest at which hauks in London lend sterling
Q. 14.Which one of these is not a commercial risk
I. Introduction of the buyer
II. New restriction placed on import export trade
III. Damage of goods in transit
IV. Change in the exchange rate
Answer:
I.Introduction of the buyer
Explanation: It is not risk at all infact it is an advantage
Q. 15.A red Clause letter of credit authorizes the
I. Banker no transfer the a/c to some other person
II. Banker to take recourse to the drawer in case of difficulty
III. Banker to fix the amount of credit
IV. Negotiating banker to provide advance credit to the beneficiary for purchase of materials
Answer:
.IV.Negotiating banker to provide advance credit to the beneficiary for purchase of materials
Explanation With this letter beneficiary can get credit in advance
Q. 16.Globalization of financial services is being promoted by
I. World Trade Organization
II. International Finance Corporation
III. International Bank for reconstruction and development
IV. International monetary fund
Answer:
II.International Finance Corporation
Explanation IFC promotes the financial services in the world
Q. 17.Which one of the following documents attests the fact that goods of specified quantity ,value of description are entering the bounds of the country
I. Bill of Lading
II. Documentary Bill
III. Consular Invoice
IV. Bill of Entry
Answer:
I. Bill of Lading
Explanation Bill of lading is a document wherein a shipping company gives its official receipt of the goods and at the same time gives an undertaking to carry them to the port of destination.
Q. 18.Export Duty is borne by the importer in ______________mode
I. FOB
II. CIF
III. FAS
IV. CIS
Answer:
III.FAS
Explanation Free along side ship All the charges upto putting the goods alongside the ship to be paid by the exporter while putting them on the ship at buyers expose
Q. 19.The export procedure begins with the:
I. Excise
II. Indent
III. Shipping Bills
IV. Mate’s Receipts
Answer:
II.Indent
Explanation It is a document in which the buyer (importer) orders for
supply of requisite goods to the supplier (exporter). The order or indent contains the
information such as quantity and quality of goods to be imported, price to be charged, method of forwarding the goods, nature of packing, mode of payment, etc.
Q. 20.Identify the document among the following that is a document of the file to the goods
I. Bill of Lading
II. Bill of Entry
III. Letter of Credit
IV. None of these
Answer:
I.Bill of Lading
Explanation Bill of lading is a document wherein a shipping company gives its official receipt of the goods and at the same time gives an undertaking to carry them to the port of destination.
Q. 21.How many copies are generally prepared of a bill to entry?
I. One
II. Two
III. Three
IV. Four
Answer:
III.Three
Explanation Three copies are prepared for bill of entry
Q. 22.An importer wishing to re export the goods is required to prepare
I. Shipping order
II. Charter Party
III. Shipping Bill
IV. Bill of Lading
Answer:
III.Shipping Bill
Explanation The shipping bill is a permission to export the goods which are imported this is known as enerpot trade
Q. 23.Cashew Corporation is subsidiary wholly owned by
I. MTC
II. RBI
III. STC
IV. EXIM Bank
Answer:
III.STC
Explanation State Trading Corporation was set to implement Foreign trade policy
Q. 24.Which of the following documents are not required for obtaining an
export license?
I. IEC number
II. Letter of credit
III. registration-cum-membership certificate
IV. Bank account number
Answer:
II.Letter of credit
Explanation A letter of credit is a guarantee issued by the importer’s bank that it will honour payment up to a certain amount of export bills to the bank of the exporter.
Q. 25.Which of the following documents is not required in connection with an
import transaction?
I. Bill of lading
II. Shipping bill
III. Certificate of origin
IV. Shipment advice
Answer:
II.Shipping bill
Explanation The shipping bill is a permission to export the goods which are imported this is known as enerpot trade
Q. 26. Which of the following do not form part of duty drawback scheme?
I. Refund of excise duties
II. Refund of customs duties
III. Refund of export duties
IV. Refund of income dock
Answer:
IV.Refund of income dock
Explanation Income Dock is not refunded
Q. 27. Which one of the following is not a document related to fulfill the customs formalities
I. Shipping bill
II. Export license
III. Letter of insurance
IV. Performa invoice
Answer:
.I.Shipping bill
Explanation The shipping bill is a permission to export the goods which are imported this is known as enerpot trade
Q. 28. Which one of the following is not a part of export documents?
I. Commercial invoice
II. Certificate of origin
III. Bill of entry
IV. Mate’s receipt
Answer:
II.Certificate of origin
Q. 29. A receipt issued by the commanding officer of the ship when the cargo
is loaded on the ship is known as
I. Shipping receipt
II. Mate receipt
III. Cargo receipt
IV. Charter receipt
Answer:
II. Mate receipt
Explanation A mate receipt is a receipt issued by the commanding officer of the ship when the cargo is loaded on board, and contains the information about the name of the vessel, berth, date of shipment, description of packages, marks and numbers, condition of the cargo at the time of receipt on board the ship, etc.
Q. 30. Which of the following document is prepared by the exporter and
includes details of the cargo in terms of the shippers name, the number
of packages, the shipping bill, port of destination, name of the vehicle
carrying the cargo?
I. Shipping bill
II. Packaging list
III. Mate’s receipt
IV. Bill of exchange
Answer:
I.Shipping bill
Explanation The shipping bill contains particulars of the goods being exported, the name of the vessel, the port at which goods are to be discharged, country of final destination, exporter’s name and address, etc.
Q. 31. The document containing the guarantee of a bank to honour drafts
drawn on it by an exporter is
I. Letter of hypothetication
II. Letter of credit
III. Bill of lading
IV. Bill of exchange
Answer:
II.Letter of credit
Explanation A letter of credit is a guarantee issued by the importer’s bank that it will honour up to a certain amount the payment of export bills to the bank of the exporter.
Q. 32. Which of the following does not belong to the World Bank group?
I. IBRD
II. IDA
III. MIGA
IV. IMF
Answer:
IVIMF
Explanation International Monetary Fund (IMF) is the second international organization next to the World Bank.
Q. 33. TRIP is one of the WTO agreements that deal with
I. Trade in agriculture
II. Trade in services
III. Trade related goods
IV. None of these
Answer:
IV.None of these
Explanation Trade Related Aspects of Intellectual Property Rights delas with aspects of intellectual property
Q. 34.In Foreign Trade CIF stands for:
I. Cost
II. Cost and Freight
III. Cost and Insurance
IV. Cost, Insurance and freight
Answer:
IV.Cost, Insurance and freight
Explanation CIF is comprised of all the important elements of trade
Q. 35.Which one of the following is the most appropriate statement
I. Foreign Trade facilitates maximum utilization of natural resources
II. Foreign trade promotes International cooperation
III. All the above statements are valid
IV. Foreign trade raises the standard of living
Answer:
.III.All the above statements are valid
Explanation Foreign trade has promoted optimum utilization, cooperation and standard of living
Q. 36.Who announces the EXIM Policy or Foreign Trade Policy
I. Central Government
II. State Government
III. Chamber of Commerce
IV. World Trade Organization
Answer:
Central Government
Explanation Central government forms he exim policy and implements it.
Q. 37.Outsourcing a producer or some components from a company in foreign country is known as:
I. Franchising
II. Contract Manufacturing
III. Licensing
IV. Joint Venture
Answer:
II.Contract Manufacturing
Explanation Contract manufacturing refers to a type of international business where a firm enters into a contract with one or a few local manufacturers in foreign countries to get certain components or goods
produced as per its specifications.
Q. 38.An exporter can raise loan on the basis of:
I. Shipping Order
II. Mate’s Receipt
III. Bill of Lading
IV. None of the above
Answer:
III. Bill of Lading
Explanation Bill of lading is a document wherein a shipping company gives its official receipt of the goods and at the same time gives an undertaking to carry them to the port of destination.